Fastest-Growing Advisors Contact Clients More Frequently

New research from The Financial Awareness Foundation’s (TFAF’s) Wealth Advisor Confidence Survey™ confirms that it pays to reach out and touch people. According to TFAF, higher performing advisors are more likely than other advisors to contact clients more than once per month. For example, nearly three in five firms (58%) expecting double-digit growth in 2019 contacted clients 2 or more times per month. By contrast just under half of firms (49%) expecting single digit growth in 2019, contacted clients more than once per month.

Is that too often? Not if what you’re sending is relevant, valuable and professionally produced.
As shown below, firms that contact clients with higher frequency have the ability to produce thoughtful content that requires a little more thought than a simple tweet, post or like:


            Communication Channels Rated “Very” or “Highly” Effective

	Contact Clients 1x or less per month	Contact Clients 2x or more per month	Variance
Public speaking	65%	83%	+18%
Writing articles for publication	57%	64%	+7%
Writing books/eBooks	50%	56%	+6%
Get quoted in the press	48%	52%	+4%
Blogging	32%	48%	+16%
Publishing articles via LinkedIn	22%	40%	+18%

Sources: The Financial Awareness Foundation; HB Publishing & Marketing Company, LLC, 2018

As shown below, firms that contact clients with higher frequency are also more likely to find value in social media—but not at the same level as more conventional thought leadership tactics cited above.

Social Media Channels Rated “Very” or “Highly” Effective

	Contact Clients 1x or less per month	Contact Clients 2x or more per month	Variance
Facebook	7%	21%	+14%
Twitter	7%	16%	+9%
Instagram, Snapchat	5%	12%	+7%

Sources: The Financial Awareness Foundation; HB Publishing & Marketing Company, LLC, 2018

The findings are even more striking when looking at the projected financial performance of responding advisors. Firms that expected to finish 2018 with double-digit growth were 1.5 times more likely than less optimistic firms to consider Public Speaking, Publishing Articles and Media Coverage “very” or “extremely” useful (see chart).

TFAF’s annual survey of financial advisor concerns and challenges, conducted in association with HB Publishing & Marketing Company, LLC. asked respondents to rate nearly two-dozen thought leadership tactics. Those in the table above were the ones most frequently cited by advisors as being “very” or “extremely” valuable.

Conclusion

We may live in an instant gratification society, but when it comes to resonating with clients, prospects and influencers, research shows you’ll have to hit the neural gym and do some mental heavy lifting. There are no shortcuts, but it doesn’t have to be drudgery. We’re happy to talk to you any time if you’d like some suggested workouts for maximizing your thought leadership gains when you have limited time. You might even find those exercises fun.

There’s much more to this survey.  Check out some of the other highlights here.

#Content marketing, #thought leadership, #wealth advisors, #The Financial Awareness Foundation, #Wealth Advisor Confidence Survey

Fastest Growing Advisors Bullish on Thought Leadership

As discussed in my last post, social media is fine for advisors. But, research from The Financial Awareness Foundation’s (TFAF’s) Wealth Advisor Confidence Survey™ confirms that financial advisors find significantly more value in thought leadership tactics that showcase their ability to speak, present, write and charm the press.

The findings are even more striking when looking at the projected financial performance of responding advisors. Firms that expected to finish 2018 with double-digit growth were 1.5 times more likely than less optimistic firms to consider Public Speaking, Publishing Articles and Media Coverage “very” or “extremely” useful (see chart above). 

Unlike firms expecting modest or flat growth in 2018, firms projecting double-digit growth this year were also more likely to find high value in blogging, authoring books and e-books, publishing on LinkedIn, holding client events and producing videos.

TFAF’s annual survey of financial advisor concerns and challenges, conducted in association with HB Publishing & Marketing Company, LLC. asked respondents to rate nearly two-dozen thought leadership tactics. Those in the table above were the ones most frequently cited by advisors as being “very” or “extremely” valuable. In my next post we’ll see how webinars, Facebook, Tweeting, Instagram and other social channels fared—particularly among advisors who were expecting double digit growth in 2018.

Conclusion

We may live in an instant gratification society, but when it comes to resonating with clients, prospects and influencers, research shows you’ll have to hit the neural gym and do some mental heavy lifting. There are no shortcuts, but it doesn’t have to be drudgery. We’re happy to talk to you any time if you’d like some suggested workouts for maximizing your thought leadership gains when you have limited time. You might even find those exercises fun.

There’s much more to this survey.  Check out some of the other highlights here.

Advisors: 10 Signs Your Website Could Use a Remodel

Now’s the time of year when many of you are setting your budgets, goals and dreams for 2019 and beyond. Before that second cup of coffee is finished, the bean counters at your firm will undoubtedly start honing in on that slippery, murky line item called “Marketing.”

You know you need a better website and social media presence, but many analytical numbers people have trouble connecting the dots between a better online persona and new assets to manage.

GET OVER IT!

First, how many potential clients are running for the hills when they find broken links, three-year old content and a site that comes unglued whenever you access it on a mobile phone or tablet? How many prospects who been referred to you are saying to themselves: “If that how they handle their website, what will happen to my hard earned wealth when they get their hands on it?” How many of your clients’ adult children or grandchildren are having their doubts about you as they become POAs and HENRYs (High Earners Not Rich Yet)? How many journalists, speaker bureaus and strategic partners are thinking the same thing after they decide to check you out for an opportunity?

Ouch!

Just like an estate plan, maintaining a professional website is an ongoing activity, not a one-and-done exercise. But, that doesn’t mean you have to do a complete teardown and start from scratch.

My colleague Patricia Creedon shared 10 signs that your website might be in need of a remodel. If more than two or three of her pet peeves sound like your site, it might be time for a checkup. Some of the most common digital potholes Pat sees on advisor sites include:

·        Poor resolution.

·        Weak security.

·        Faulty graphics.

·        Lack of printable resources.

·        Forcing visitors to do too much scrolling.

“It’s not that any of these make a website bad any more than some DIY wiring in your dream home makes the whole house a wreck,” writes Creedon. “But they are areas of concern that if let go, could become real problems because they could discourage potential clients.” 

Here are five more of Pat’s Pet Peeves when it comes to advisor websites.

Conclusion

In today’s digital age, prospective clients are doing as most of their due diligence about you online well before they commit to an initial discovery meeting. It doesn’t matter how strong the word-of-mouth referral is. If your website, LinkedIn profile and other pillars of your online presence are not up to speed, then that prospect is going to swipe left right past your door.

Next!

Our Resources section has more tips and helpful hints. Contact us today for a complimentary review.

#website fails  #website improvement #financial advisor marketing

TAGS: Patricia Creedon, website pet peeves

Before Your Clients Write that Tuition Check……

Now is the time of year that many clients are turning to you for advice about financing the jaw-dropping price of college tuition. Study after study confirms that a college education—one of the biggest legal rackets in America today--is still worth the price of admission and stress. But, several of our clients have been telling Forbes, US News and other national media outlets that wherever your child or grandchild attends, it’s important to get a well-rounded education, not just the prerequisites for a high-paying career.

Bottom line: Take courses that actually make you think, write communicate and create. That’s the only way to be adaptable in a constantly changing world.

Mark Rioboli, CFP, CFS  Director of Wealth Management at Independence Advisors  (Wayne, PA) said universities should take a page from Ben Franklin's book and focus on those things that make students “healthy, wealthy, and wise.” College curriculum should consist of nutrition and fitness training “because without health, you have nothing.” Rioboli also told me critical thinking, project management and sales skills are valuable in any career one chooses.  

Anthony Glomski, founder of Los Angeles-based AG Asset Advisory and author of the new book Liquidity and You: A Personal Guide for Tech and Business Entrepreneurs Approaching an Exit agreed. “When speaking with (and recruiting) young graduates, I’ve found their basic skills are not as far along as I’d like to see, especially reading, writing, organization, and attention to detail. Any degree that emphasizes those skills will add a lot of value in the job market. In a world in which everything is driven by artificial intelligence, the one thing we know that is irreplaceable is the human connection. Degrees that help student develop traits that strengthen human connections are going to be value in their careers,” added Glomski.

Blake Christian, CPA Partner at HCVT in Long Beach, CA said a student’s focus for the first two years should be on “a solid foundation that will help him or her regardless of major--basic finance, accounting and budgeting, for example. Who doesn’t benefit from those skills both personally and professionally?” asked Christian. He is also a strong advocate of business and technical writing, along with verbal communication. “When it comes to writing a business plan, even liberal and creative artists will have a more solid financial footing with a class or two in these subjects,” maintained Christian, author of the new book, Benefits of Becoming A CPA-Preneur.

Glomski, an undergrad accounting major, said he benefitted greatly from the liberal arts courses he took. For instance, “philosophy went really deep, which helped me in developing personal relations. Economics and other social sciences will always be applicable and accounting was invaluable. Sure, accounting is becoming increasingly automated, but it’s priceless training learning how to understand the mechanics and backbone of any business,” Glomski related.

Before junior year, Christian strongly recommends that students do an internship in their chosen field, along with an aptitude tests and counseling to ensure that the student “really wants to go down that path and has the general skills and drive.” 

“How do you teach wisdom?” asked Rioboli. “I suggest starting with meditation and all the principles in emotional intelligence 2.0 by Travis Bradberry, Travis and Jean Greaves.”

Also consider Top 10 Life Advice Comments for Millennials by our client, Matt Topley, chief investment officer of Fortis Wealth in Valley Forge, PA.

Conclusion

Glomski said adaptability is the key ingredient for career success today. “It’s likely you’ll get of out college and be in a career for five to seven years, and then you’ll be in a completely different career. What prepares you for that?”

#college tuition #careeradvice #liberal arts #tuition ROI 

Anthony Glomski, AG Asset Advisory, Blake Christian, HCVT, Mark Rioboli, Independence Advisors, Matt Topley, Fortis Wealth

HB Clients Featured in National Media

It was another good week for those of you taking advantage of our Just in Time media relations services. Here are some highlights.

ANTHONY GLOMSKI, founder of AG Asset Advisory, was the featured guest on the Angel Investor Podcast with Jeff Barnes. Author of the new book, Liquidity and You: A Personal Guide for Tech and Business Entrepreneurs Approaching an Exit, Anthony discussed the importance of surrounding yourself with the right people to build your business on secure footing to produce a successful exit. Again, you can check out the episode here.

BLAKE CHRISTIAN, CPA, told US News & World Report that proper diversification not only applies to asset classes, but to working with more than one financial advisor if you have over $1 million in investable assets (see Should Investors Diversify Providers?)  "Each advisor has different style, expertise and biases," explained Christian, a partner at Holthouse Carlin & Van Trigt, in Long Beach, California. Christian is the author of a new book we’re finalizing called Benefits of Becoming A CPA-Preneur.

KYLE WALTERS, a wealth advisor at L&H CPAs and Advisors in Dallas, TX, had another guest column published in Accounting Today entitled Red Teaming: Creating your perfect competitor makes you a better, more focused firm. Author of the new book, The Personal CFO, Walters said red teaming requires you to build of model of your perfect enemy/competitor before someone else does it for real.

Great work gentlemen. As our annual Wealth Advisor Confidence Survey™ revealed, more than half of advisors expecting double-digit growth this year (54%), say press mentions are a “very” or “extremely important” component of their personal branding initiatives. That’s significantly higher than advisors who are expecting single-digit or flat growth over the next 12 months.

Where would you rather be?

TAGS: Anthony Glomski, AG Asset Advisory, Blake Christian, HCVT, Kyle Walters, L&H CPAs, Accounting Today, Angel Investors Network Podcast, Jeff Barnes

Short Sellers Stirring?

The stock market’s recent nosedive has many wondering if the near-record bull market is finally running out of steam. Some analysts say the reversal is a healthy correction bringing valuations in line with historical norms. But, plenty of media pundits are playing the doom-and-gloom card and counting the days until the yield curve officially inverts. Sure, trade wars, rising rates and natural disasters are playing a role, but what about short interest? Other than a few rants from Tesla’s tweeter in chief, Elon Musk, not much attention is being paid to short-sellers, those contrarians who could finally be getting the opportunity to pounce.

*** POLL: How much will the market go down before year end? Take our Poll. Single question.  Instant results! See how you stack up to your peers.

Our clients, Anthony Glomski (AG Asset Advisory) and Matt Topley (Fortis Wealth), have been handling lots of media inquiries lately to help folks understand the role that short sellers play in today’s capital markets. Below are some excerpts:

Glomski, founder of Los Angeles-based AG Asset Advisory told me the other day that short sellers are often “perceived as the enemy, naysayers who bet against companies and entrepreneurs.” In truth, he said short sellers are an important part of an efficient market. “They risk their capital and help to keep markets honest when Wall Street doesn’t.” 

Matt Topley, chief investment officer of Fortis Wealth in Valley Forge, PA had a similar take. “Short selling in the past was primarily a small cadre of esoteric fundamental research wonks who used forensic accounting to reveal holes in public company balance sheets.” Topley also said those folks would make big bets that required a huge amount of “patient capital.”  Today with 12,000 hedge funds operating (up from 500 a few years ago), “shorting is expressed through ETFs,” added Topley, a Philadelphia Inquirer Influencer in Finance award winner.

Glomski noted that short selling has evolved and benefitted over the past 20 years from the internet’s “democratization of information,” adding that “complication and wrongdoing” have also emerged from message boards and Twitter. “History shows us though that short sellers don’t determine outcomes. Market competition does.”

Glomski works with tech entrepreneurs throughout the business life cycle, from startup to exit. “As is the case with Tesla today, their battle is with highly capable and motivated competitors, not necessarily short sellers. In my book Liquidity &You, I discuss a quote from Warren Buffet, ‘In the short run, the market is a voting machine, but in the long run, it is a weighing machine.’ Entrepreneurs should focus on the weight and not the vote.”

According to Topley, “most hedge fund equity long books have a 90-percent correlation to the S&P then they fill the short book with ETF shorts to protect downside. Huge short bets on companies are harder to achieve because a massive amount of intellectual capital is chasing the same ideas and this capital is not patient. Why? Because managers are being measured on a quarterly basis.” 

What’s more Topley said companies with accounting fraud “keep a small float of stock which makes their shares very hard to short because firms can’t find enough borrowers…..and if they do, the rebate rate is too high,” added Topley author of the daily blog Topley’s Top 10.

Conclusion

At the end of the day, investing is about seizing opportunities, preferably where the rest of the crowd doesn’t see them yet. Don’t focus on whether the smart money is short or long. Focus on being right. Turn off your TV and unplug your computer. Focus on the long-term with the right advisor guiding your way.

TAGS: Short selling, market correction, Matt Topley, Fortis Wealth, Anthony Glomski, AG Asset Advisory, Liquidity and You

Pros and Cons of Serving on Boards

Many of you reading this post are at the peak of your careers. You’ve probably been asked to join multiple boards and wondering it’s worth it. Sitting on boards can be a great way to boost your credentials and give back to organizations you support. But, there is often a bigger time commitment than expected. It can take longer to get things done than you’re used to and there’s potential liability exposure.

To help us understand the pros and cons of sitting on boards, we reached out to several HB clients who are highly sought by a variety business, academic and not-for-profit organizations.

Blake Christian, CPA  a partner of HCVT in Long Beach, CA said the most important decision to consider is whether or not you have the right skill set for the particular board. “You should ask the board members what the strengths, weaknesses, opportunities and threats are to the future business plan for the entity--as well as the areas of expertise of the current board members. You will also want to understand the time commitment involved, the frequency of board meetings, the time of day the meetings are held and whether you are also expected to sit on a committee to deal with other entity issues,” added Christian, author of the forthcoming book, Benefits of Becoming A CPA-Preneur .

Matt Topley, chief investment officer of Fortis Wealth told me he not only wants to make a difference, but enjoys the opportunity to learn from fellow board members who come from different industries and professions. Topley stressed the importance of making sure your values and work style is consistent with the other board members. “If you’re very action-oriented like I am—make sure the board is equally action-oriented and not filled with members who serve to socialize or pad their resumes,” added Topley, a 2018 Philadelphia Inquirer Influencer in Finance award winner.

According to Christian, “If your skills fill shortfalls within the board, then you are likely a good match. For example, if the entity is having trouble getting funding and you have skills with grant-writing, banking, capital campaigns, etc., then that is a good match.  If they are looking to improve their financial controls, forecasting, etc. and you have accounting expertise, again that can be a good match.”

When Topley joined the board of his alma mater, Holy Family University in 2010, the school was experiencing significant financial challenges as many small colleges do. “I chair the endowment committee and serve on the audit committee. With a new focus on financial metrics, Holy Family is now on solid financial footing with an increased enrollment. Holy Family is now one of the Philadelphia areas, top-ranked schools in terms of cost-versus-return and graduate job placement,” noted Topley.

Christian, who has served on over 25 boards during his career, recommends that prospective board members do their due diligence before joining.  “Review their historical financial statements and check out the founders and board members to ensure they have the expertise and solid reputations.  Then attend at least one board meeting or committee meeting to get a feel for the style and competency of the board. You will also want to make sure the entity has adequate insurance policies for the board members.  It is not uncommon for boards to be sued for their actions or inactions,” added Christian.

Conclusion

Cynics would say “No good deed ever goes unpunished.” But if you do your homework about a board and join for the right reasons, chances are you’ll find it highly rewarding both professionally and personally.

TAGS: Joining boards, board involvement, @taxcredits_CPA , @MattTopley, Blake Christian, Matt Topley,

Getting Quoted in The Journal Is Not Impossible, But……

Research shows that getting mentioned in the press is one of the most effective ways for financial advisors to enhance their personal brands and to become bona fide thought leaders. But, the competition for journalists' attention is fierce. Not only are PR folks pitching them constantly, but so are financial professionals themselves and/or their agencies. 

The media industry has changed dramatically over the past few years. The number of journalists has shrunk, but the number of stories editors expect to be filed has increased as so much content has moved to the Web. 

According to Rich Chernela, a veteran financial media relations professional who has recently joined our firm, “Journalists are expected to update stories repeatedly and there are fewer and fewer in-depth stories. A number of reporters I know have complained to me that they are limited to 500 word stories. This leaves very little room for anything but top line info and very little, if any, analysis.”

So, how do I get coverage (that counts)?

Chernela says the old fashioned PR approach of introducing sources to journalists for future commentary remains a key element of any PR program. That said, the tried and true approach has become more difficult in light of the factors mentioned above. “This leaves journalists little time to break away for background meetings or phone calls—let alone lunch.”

TIP: Whether you’re doing your media outreach by yourself or with an agency, make sure you are VERY FAMILIAR with the topics and industries the journalist covers and show some evidence that you’ve read a few of their recent articles. It’s an instant red flag when a journalist receives a pitch that’s way out of his or her target area and you might not get a second chance to get on their radar.


Make a journalist’s life easier

A creative PR person can get the attention of a journalist with a clever story idea that identifies a trend or issue that is being overlooked.  A good PR person should be monitoring breaking news and quickly identifying journalists whose beats are relevant to the breaking news and contract them to offer a client for comment. 

“To break through the noise, a PR person must know the client's take on the topic,” added Chernela.  “Journalists don't want to hear about someone who can comment on a hot topic or issue--they want a source who is not just credentialed, but who has an authoritative and unique take on the issue.”

Speaking of media attention

• Our client Anthony Glomski, founder of AG Asset Advisory was quoted in Forbes this week Why Many Entrepreneurs Are Missing Opportunities To Maximize Their Wealth. 
• Meanwhile, Kyle Walters, (L&H CPAs) has been a twice-monthly guest columnist in Accounting Today and was just named to Accounting Today’s Top People to Watch list for 2018.
• Matt Topley (Fortis Wealth) was featured in Advisor News (So, Your Client’s Child Is An Elite Athlete – How Do You Plan Financially For That?) ….and his colleague, Randy Hubschmidt, was recently quoted in US News & World Report (Take a Crash Course in Student Housing Investments).
• James Nevers (Soundmark Wealth) recently shared his thoughts about planned giving in the Self Magazine financial planning guide (What Financial Planners Want You to Know Before You Donate to Charity).
  Conclusion

We can’t guarantee you’ll see results like those of our clients above. But if you do your homework and follow our plan, you’ll be more than ready when the right media opportunities come knocking.

TAGS: Rich Chernela, Kyle Walters, Anthony Glomski, Matt Topley, Randy Hubschmidt, James Nevers, 

Downside to a Strong Job Market: Cashing Out 401(k)s Early

Thanks to a strong economy and a 17-year high in the employee quit rate, record numbers of U.S. workers are leaving their jobs voluntarily to seek greener pastures with new employers. While most will exit amicably, many are burning their bridges in a potentially more dangerous way—they’re cashing out their 401(k)s when they leave.

About 50 percent of workers ages 20 to 29 who left a job cashed out their defined contribution plans on the way out, according to the upcoming Alight Solutions' 2017 Universe Benchmark report.

But it's not just the millennials: More than four in 10 employees in their 30s and 40s who were laid off, quit or found new work took the cash instead of keeping the money where it was, or rolling it over into their new employer's retirement plan or an IRA.

HB clients, Blake Christian, CPA and James Nevers, CFP® were interviewed in the national media this week about the dangers of cashing out retirement accounts early and offered smarter alternatives.

According to Christian, a partner at Long Beach, CA-based HCVT: It is fairly common for employees to cash-out smaller 401(k) accounts when they switch jobs--a mistake they’ll regret at tax time the following April. “That’s when they realize they are not only paying federal and state tax on the 401(k) funds they cashed out, but they’re are also subject to a 10-percent federal ‘early withdrawal penalty’ plus a state penalty if they are under age 59-1/2 at the time of withdrawal.“

It’s not uncommon for 50 percent of the funds (or more) to get “vaporized by taxes and penalties” said Christian, adding that by that time, “the employee has likely blown the money on a new jet ski or other toy.”

Nevers, an advisor at Soundmark Wealth Management in Kirkland, WA agreed: “When you are between jobs, especially early in your career, that old 401(k) starts to look like a tempting pile of cash you can use for a vacation or to relax for an extra month or two between jobs. The problem is that the $10,000 in your old 401(k) isn’t really the same as $10,000 in your pocket (after taxes).”

Let’s say you are 40 years old and in a 25 percent tax bracket. Since you’re under age 59 ½, withdrawing that $10,000 early will leave you with only $6,500 after taxes. Even worse, explained Nevers, is that you “just hit the re-set button” on your retirement savings. “Remember, retirement savings are for retirement. Only save for retirement after you have set up an emergency fund that can cover your living expenses for three to six months, or for as long as you might expect to be out of work. This will help you keep your retirement funds where they belong, added Nevers.

According to Christian, by leaving the funds with your former employer, the 401(k) fees are generally low and investment choices are often broad.  “You can also roll the 401(k) amounts into an IRA and continue earning tax-deferred retirement savings. If you are expecting to be in a relatively low tax bracket the year you leave your current employer, ask your tax preparer or financial advisor about the possibility of rolling the funds into a Roth IRA. This trigger taxable income (but no penalties), and the Roth IRA can build up TAX FREE after five years and make this pool of money extremely valuable when you retire,” added Christian.

Retirement may seem far away, but time is a powerful factor to have on your side when it comes to retirement savings, said Nevers. “Albert Einstein called compound interest the eighth wonder of the world. It’s even more powerful when it’s inside of your 401(k).”

Conclusion

The key takeaway from our experts is that everyone from young adults to near-retirees can benefit from a little delayed gratification. “Instead of having a little fun today and cashing out your old 401(k), keep it saved,” said Nevers. “You’ll be thanking yourself down the road. Early in your career, you may only have a few thousand dollars saved up in your retirement accounts. It may not seem like much, but thanks to the power of compound interest and the many working years you have until retirement, your accounts have the potential to grow and grow.”

TAGS:  Alight, cashing out 401(k) early, Blake Christian, James Nevers, compound interest, early withdrawal penalty