With revenues from asset management fees slashed by the worst bear market in decades, financial advisors are struggling. And with Wall Street discredited by the financial crisis, this is the opportunity of a lifetime for independent advisors to build their client base, according to Jerry Lezynski of SEI Advisor Network, who spoke at this week’s session of the Financial Crisis Webinar Series. To survive—and once again thrive—says Lezynski, advisors must focus now on delegating, marketing, communicating, prospecting, and positioning, and they must take steps right now to improve communications, retain clients, and build new relationships.

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Hand-picking prospects using LinkedIn: Next week’s webinar session will look at how advisors can use LinkedIn to build their client base during the current economic downturn. The popular social networking site provides a great way to find new leads and build your online presence. John Comer, a marketing coach to advisors who has over 28 years of experience, recently conducted groundbreaking research into how advisors can use LinkedIn for marketing. He will present his findings at this session.

Register now
Download March 27 presentation slides

Are you successfully implementing a plan to get through the economic downturn? Do you have any recommendations that could help your peers to retain clients, reduce costs, or land new prospects? If so, please share your ideas by commenting on this blog. 

As the economic malaise continues, financial advisors are struggling. The stock market plunge has cut assets under management in half, and clients need more handholding than ever before. With the large Wall Street firms’ losing their credibility, independent advisors have a huge growth opportunity, but it won’t be easy.

As an advisor, to succeed in this downturn you must restore revenues, reduce costs, retain clients, and expand your business. These tasks can be daunting in the face of the worst recession since the Great Depression. But, at Friday's session of the Financial Crisis Webinar Series, marketing expert Jerry Lezynski of SEI Advisor Network will show you how you can keep your business on solid footing through delegating, marketing, communicating, prospecting, and positioning.

Mr. Lezynski will also explain how to discover your firm’s vision and identity and how to use that discovery to properly plan for your firm’s growth.

Register now
Download presentation slides

Seventy-six percent of advisors say they are not confident that they possess the skills to fully vet alternative investments. 54% percent say they do not have a “standard” list of documentation that they collect from alternative investment managers before investing, and  63% say they have no formally documented due diligence process, according to a suevey this week by Advisor Products.

With that bleak data as a backdrop, along with the guilty plea entered yesterday by the infamous Bernard Madoff, Jason Sharfman of Corgentum Consulting LLC., which specializes in due diligence of alternative investments, told attendees at this week's Financial Crisis Webinar that lax RIAs could face the risk of liability and are vulnerable to lawsuits by clients unless they tighten alternative investment due diligence.

The webinar also featured a discussion about Schwab Institutional's effort to move all alternative investments off its custodial platform. Anthony Carl of Sterling Trust Company and Tom Anderson, CEO of Pensco Trust Company, also participated in the discussion. Carl and Anderson, who represent two custodians to which Schwab Institutional is referring advisors as they move off the Schwab custody platform, spoke about how using a trusted custodian can help mitigate the risks of alternative investments.

Download Sharfman's presentation slides     Download Anderson’s presentation slides

For thoughtful coverage of the Schwab Alternative Investment custody issue, read Andrew Gluck’s blog post.

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Has your firm developed a successful due diligence process? Do you have any recommendations that you would like to share? If so, please comment.

On March 20, Jerry Lezynski of SEI Advisor Network presents SEI's 2009 Survival Guide For Financial Advisors. Advisors should attend this session for new ideas about how to grow business during this difficult time. Register now.  Download presentation slides.

The bad news on the economy is unrelenting. Companies—entire industries—are collapsing and millions of jobs are disappearing. Clients want answers, while you feel responsible for their investment losses and doubtful about your ability to help them. These are difficult days, if not overwhelming. In this presentation, Sharon Hoover, executive leadership coach, shows you how to manage the demands being made on you in these tough times.
Download Hoover's presentation slides

March 13: Due Diligence On Alternative Investments: Never Be "Madoffed" And Show Clients Transparency
Performing due diligence on investments is more important than ever, as is being able to prove to clients and prospects that you run an honest advisory business. In this presentation, Jason Sharfman, author of the recently published book "Hedge Fund Operational Due Diligence: Understanding the Risks," will tell you how to perform investment and operational due diligence and how to create policies and procedures that ensure transparency when investors are performing due diligence on your firm.

Before founding Corgentum, Scharfman oversaw due diligence for a $6 billion alternative investment allocation group called Graystone Research at Morgan Stanley. He was also a senior member of a team that oversaw all of Morgan Stanley’s hedge fund operational due diligence efforts allocating $13 billion to a firm-wide platform of over 300 hedge fund managers across multiple investment strategies.

Download Sharfman's presentation slides

Effective wealth management means more than making good investments. Protecting assets from liability is just as important. At the February 27 session of the Financial Crisis Webinar Series, Gideon Rothschild, partner at prominent New York law firm Moses & Singer LLP, discussed asset protection strategies that advisors and clients can use to shield assets from creditors, liability, or divorce. He stressed the importance of planning ahead, as trusts and other asset protection vehicles will be found invalid if created on the eve of a judgment. Therefore, for best results, these strategies should be integrated with a client's estate planning and should be developed before an imminent liability arises.
Download presentation slides       See Rothschild's articles and resources

March 6: Manage the strain of the financial crisis
As the recession deepens, clients are demanding attention and answers, while you may be feeling responsible for their losses and doubtful of your ability to give them good advice. The demands being made on you can be difficult to manage. Sharon Hoover, executive leadership coach and owner of CoachingWorks, will help you teach you how to better manage the events and people in your daily life. She’ll discuss strategies for identifying and overcoming what stands in the way of your and your clients' personal and professional success.
CFP licensees who attend this webinar are eligible for one continuing education credit. For more information on Sharon Hoover's coaching techniques, see her blog posts. 
Register for webinar   
Download Hoover's presentation slides

As the financial crisis and Wall Street scandals have destroyed investor trust, rebuilding client loyalty is a priority for financial advisors. Knowing a few key internet research techniques can help advisors build lasting client relationships and even locate new prospects. Sam Richter, chief marketing officer of ActiFi Inc., shared dozens of valuable research tips with attendees at this week's session of the Financial Crisis Webinar Series. The fast-paced session was one of the most well-received by attendees, as they learned a wide-range of research ideas including using Google search strings for more focused results and how to use free online databases to stay informed about clients and prospects.
Download Sam Richter's presentation slides

Make the right investment choices for your clients
In today's challenging investment environment, it's more important then ever to make the right investment choices for your clients. Next week at the Financial Crisis Webinar Series, Don Phillips, managing director of Morningstar, will explain what key factors to look for when choosing mutual fund investments. He will explain why funds that focus on stewardship over salesmanship have gained the largest portion of new asset inflows and why these same funds can also produce the greatest investor returns after fees. Continuing education credit will be granted to CFP attendees who attend this session.

Register for webinar      Download presentation slides

With the global economic crisis disrupting the financial services business, money is in motion, clients are firing brokers, and opportunities abound for independent advisors. Hugh Massie of Financial DNA Resources spoke about how RIAs can seize the moment at today's Financial Crisis Webinar Series. Massie has designed a systematic process for uncovering and addressing a client's unique financial personality traits and adapting your communication to each client. Massie's process uncovers predictable hard-wired behaviors that significantly influence financial decisions--Financial DNA. Download Hugh Massie's presentation slides.

Learn about advanced internet marketing research techniques to find out about prospects, discover niches, and uncover important tidbits about clients. Friday, February 13 at 4 p.m. EST, Sam Richter, chief marketing officer at ActiFi Inc., will show you secrets of the Web. ActiFi specializes in consulting to advisory firms about the people, process, and technology needed to run a profitable practice. Richter has more than 20 years of experience in advertising, public relations, and e-commerce. He has created  award-winning technology, sales, and marketing programs for start-up companies, and some of the world’s most famous brands.

Register for webinar                      Download presentation slides

Advisor Products today received approval to award continuing education credits to advisors who attend weekly The Financial Crisis Webinar Series.

Many of the one-hour sessions will be eligible for one continuing education credit from the Certified Financial Planner Board of Standards. To receive CE credit, simply enter your CFP Board Number when you register. We'll submit a report confirming your attendance. 

Please register now to reserve a place at the following upcoming webinars:

• Remake Your Firm By Systematically Addressing Financial Personality Traits with Hugh Massie of Financial DNA Resources (Feb. 6)
• Advanced Internet Research Techniques For Advisors with Sam Richter of ActiFi, Inc. (Feb. 13)
• Mutual Funds Are Bought, Not Sold: Winning In An Investor-Centric World with Don Phillips of Morningstar, Inc. (Feb. 20)
• Wealth Protection Planning with Gideon Rothschild of Moses & Singer LLP (Feb. 27)
• Indentifying And Overcoming Factors Impeding Your Firm's Success with Sharon Hoover of CoachingWorks (March 6)

As the global economic crisis disrupts the financial services business, money is in motion, clients are firing brokers, and opportunities abound for independent advisors. How can you seize the moment?

A key is systematically uncovering and addressing each individual’s unique financial habits and behavior and adapting your communication to each prospect and client. Based on empirical research, Hugh Massie of Financial DNA Resources has designed a process allowing advisors to uncover predictable behaviors that significantly influence financial decisions.

Learn how you can address hard-wired traits of financial personality to communicate and serve clients better and take advantage of opportunities presented by the current turmoil. Plus, this webinar has been approved for one continuing education credit from the Certified Financial Planner Board of Standards. Just be sure to enter your CFP Board Number when you register and we'll take care of the rest.

Register for the webinar       Download presentation slides      Two-minute pre-webinar survey

Bruce Peters, CEO of CABHQ, a client advisory board facilitator, introduced attendees to client advisory boards (CABs) in this week's session of the Financial Crisis Webinar Series. Client advisory boards help advisors understand the work that is most valued by clients and how to direct resources to those tasks while eliminating work that is not valued or noticed. CABs also help forge longstanding relationships because the client is investing time in helping to improve the advisor's business. Peters said that out of all of the advisory firms for whom he has facilitated advisory boards, no CAB member has left his advisor.
Download Bruce Peters’ slides

Remake Your Firm Amid The Crisis: Systematically Uncover And Address Financial Personality Traits
Our next webinar on February 6 will also focus on improving communication with clients, but will delve into how to identify your clients' unique personality characteristics and adapt your communication methods accordingly for more personalized service. Hugh Massie, Founder and CEO of Financial DNA Resources, will speak about the predictable hard-wired behaviors that significantly influence financial decisions and he'll show you how you can use this knowledge to take advantage of opportunities brought by the current market turmoil.
See more information on the Feb. 6 webinar.

Kevin Mahn, portfolio manager of SmartGrowth Mutual Funds, spoke at today's session of the Financial Crisis Webinar Series about investing in exchange-traded funds amid the global financial crisis. He explored the caveats of ETF investing and explained how his firm’s funds have used ETF investments to outperform the S&P 500 by more than 20 percentage points in 2008, despite the fact that 92% of ETFs lost money over the same time period. ETFs are growing faster than ever, in both number and investment volume, according to Mahn. Today there are thousands of ETFs, representing over $1 trillion in assets and invested over all major asset classes and geographical regions. Investing in ETFs is a good way to diversify client assets while incurring expense ratios that are often lower than mutual funds.

Download Mahn’s slides
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Financial Crisis Webinar Series
Friday, January 30, 4 p.m. EST
If you are wondering how you can best communicate with clients about the market fallout and what type of response clients expect from you, then you’ll benefit from attending our next webinar. Bruce Peters, CEO of CABHQ, a facilitator of client advisory boards (CABs), will talk about findings from recent client advisory board sessions he has led for financial advisory firms. He’ll tell you how you can alleviate client fears and how you should speak with them about the emotional stress they’re feeling after seeing their portfolio values tumble this year.

Mark Tibergien, CEO of Pershing Advisor Solutions LLC, spoke about shifts advisors can make to recover from the stock market’s freefall, which has slashed revenue from AUM fees. To assure survival, advisors must reevaluate fee structures and aggressively cut expenses. “You have to begin thinking about what will truly make a difference in your business and what wouldn’t matter if you cut it,” said Tibergien. “And you need to act quickly to get your finances in line for a prolonged period of market turbulence.”
Tibergien said firms that adapt find independent financial advice in high demand. Investable assets in U.S. households are expected to grow $35 billion annually over the next four years, he said. Among the major trends Tierbergien suggested focusing on in the months ahead: using technology to increase efficiency, documenting your firm’s business and advice processes, and attending to internal security controls. He expects more mergers among independent advisory firms, as tighter profit margins push firms to seek economies of scale.

Download Tibergien's slides

Financial Crisis Webinar Series
Friday, January 23, 4 p.m. EST
SmartGrowth Mutual Funds, which invests solely in ETFs, has outperformed the market over the past 18 months by more than 20 percentage points and declined one-fifth as much as the S&P 500 in 4Q09.
Kevin Mahn, the funds' portfolio manager, will speak about how his funds select ETFs and which ETFs are most attractively positioned for 2009.

We asked advisors registering for last week’s Financial Crisis Webinar to tell us the single most important thing they are doing to respond to the global economic and market meltdown. Below are their responses.

Before reading the answers, please register for today’s webinar at 4 p.m., when Mark Tibergien, CEO of Pershing Advisor Services and an expert on how to run an efficient advisory practice offers 10 Steps To Recover From The Market Cataclysm.  

Please take our 60-second poll before the webinar.

Last week, we asked advisors what the most single most important thing they did in 2008 to improve their business. Below are answers from 132 advisors.

Advisors who attended this past Friday’s Financial Crisis Webinar heard about techniques for gaining new clients during the crisis.
Linda Strachan, senior vice president at EISI, talked about the upheaval in the economy and the specific financial problems it is causing for clients. Strachan, CFP licensee who holds a Ph.D. computer science, said that the need for financial planning is greater than ever. With clients worried about losses in their nest egg, she encouraged advisors to use planning engagements to deepen relationships and gain new clients. With just 62% of Americans saying they have saved enough for retirement, only 22% of pre-retirees saying they have a retirement plan, a need exists. Yet she said just 23% of financial advisors say they provide financial planning services.
Scott Farnsworth says advisors can increase sales dramatically by using story-telling and listening techniques. Farnsworth, an estate planning attorney, CFP licensee, and certified Time To Think Coach, is the author of several books and president of Sunbridge Legacy Network, which has coached hundreds of lawyers and financial advisors. Farnsworth says your clients relate to stories about people, and it makes financial and estate planning ideas easer to understand and act on. Farnsworth says his communication tactics not only increase sales but build authentic, meaningful relationships with your clients.
See Replay Of Strachan-Farnsworth webinar     Download presentation slides

On Friday, January 16, at 4 p.m. EST, Mark Tibergien, Chief Executive Officer of Pershing Advisor Solutions LLC, will be the speaker at the Financial Crisis Webinar Series. Tibergien for years has studied how advisor practices can run more efficiently. Hear his ideas about how to run your business during this time of turbulence.
Register for that session.

In preparation for our webinar today at 4 p.m. EST about how you can better run your practice through the globally financial crisis, we conducted a survey in the last three days. Of the 287 advisors registered for today’s webinar, 147 responded to the survey and virtually all of them answered every question. Below see the poll questions exactly as they appeared in the survey, the statistical results, and my commentary.

Many advisors are having a difficult time, with, 43% saying the financial crisis has been bad or very bad for business. However, 16.5% of those polled say the crisis has been good or very good for business. The remaining large group of advisors (41%) say the financial crisis has been neither good nor bad for business.

While 44% of advisors surveyed said they are not cutting any expenses, more than one in five say they will be taking a pay cut. Half that number say they will be cutting staff salaries. (Keep in mind that many of those polled could be sole practitioners.) With 20.3% of advisors saying they are cutting expenses across the board and 44.2% saying they are cutting nothing, most advisors for now seem to be trying to ride out the crisis before slashing expenses.

Of the expenses we asked about, the second largest expense advisors say they will reduce is marketing. Keeping in mind that I own a marketing company serving advisors, most smart business owners would say that cutting marketing expenditures now would be a mistake. For independent advisors, cutting expenses on marketing now, when the Wall Street giants have been discredited, makes little sense. The large firms on Wall Street, which have always had by far the greatest market share in the retail advice market, are likely to see their clients leave en masse because so many clients have suffered devastating portfolio losses. It’s a great marketing opportunity for independent advisors who articulate how they are different from Wall Street brokers.

My strategy for recouping revenues lost due the decline in asset values under management is:

To seize the opportunity created by the financial crisis, 92% say they know they must acquire new clients, offer additional products and services, or do both. The challenge will be differentiating yourself from Wall Street’s legions. Our speakers at today’s webinar have specific ideas about how you can differentiate your business from other advisory firms. Scott Farnsworth's approach uses story telling. “Using stories to sell and to learn your clients’ stories can revolutionize professional selling,” says Farnsworth. “It uses a complete sequence of story exchanges between professional and prospect to sell—to sell more and to sell more often.

I know how I can use financial planning to increase my firm's revenue and grow my business.

One of the most important ways to differentiate your practice and provide real value is to offer more than just investment management advice. Offering financial planning advice deepens client relationships. Yet 25% of advisors polled admit not knowing how they can use planning to increase revenue. Our other speaker today, Dr. Linda Strachan, a senior VP at EISI, the largest planning software company in North America, will provide insights into how advisors can integrate planning into client engagements.

At this week’s webinar, Fran Kinniry, CFA, who runs the Investment Strategy Group at The Vanguard Group, addressed rational expectations for the stock and bond markets. Though Kinniry expects stocks to outperform bonds over the long term, he said investors might direct more capital to fixed income investments based on trailing returns. Financial advisors must manage expectations of investors who fall victim to recency. Helping clients overcome such behavior is increasingly where advisors add value for clients. View replay of Mr. Kinniry's presentation and download the slides.

Friday, January 9, 2009: Scott Farnsworth, CEO of SunBridge Inc and founder of the Legacy Builder Network, tells advisors how to use an authentic approach to estate planning to make client relationships more rewarding and increase sales.

With so many clients and so much money in motion as a result of the financial crisis, advisors have a historic opportunity to capture new business. But you must communicate that you are trustworthy and capable. Mr. Farnsworth’s coaching programs are very successful and he will speak about his techniques at this session.

Mr. Farnsworth, who was named one of Financial Advisor Magazine’s “Innovators of the Year,” designs and delivers insightful, transformative workshops for professional advisors, and creates practical, imaginative tools that touch hearts and change lives. He is a certified Time to Think Coach and Consultant with nearly three decades of experience as an attorney and a Certified Financial Planner©.

Register now for that session.

At this week’s Financial Crisis Webinar, Mike McGonigle, director of Credit Research at T. Rowe Price Group, spoke about opportunity and risk in fixed income securities. McGonigle discussed how the unprecedented fallout of the financial crisis has opened opportunities in municipal bonds and investment-grade corporate bonds. These bonds have seen significant yield increases yet hold only moderate risk.
He said that until some stability comes to the financial markets, advisors should seek income protection rather than capital gains.

Though high-yield corporate bonds are yielding 18-percentage points more than 10-year year Treasuries, McGonigle says it is not time to venture into below investment-grade bonds. Historically, they rebound later in recessions and advisors can wait until the depth of the recession becomes clearer. If you missed the session, a replay is available, and you can download Mike McGonigle’s slide presentation here.
Friday, December 12, at 4 p.m. EST. Fran Kinniry, 
director of Investment Strategy at The Vanguard Group will talk about the outlook for capital markets and the advisor's role in delivering alpha to clients. Mr. Kinniry, a principal at Vanguard, will explain how advisors can put the 2008 market plunge in perspective for clients and optimize the odds for success in wealth management engagements. Register now for that session.