Round the table magazine . september - October 2014

ROUND TABLEOFFICIAL PUBLICATION OF THE MILLION DOLLAR ROUND TABLE | SEPT/OCT 2014

the

Be an irresistible leader 12 | Retain and motivate staff 20 | 2015 leaders take office 43

2015 MDRT PRESIDENT

Caroline A.Banks, APFS

ANNUAL MEETING2015 - JUNE 14 TO 17, NEW ORLEANS, LOUISIANA

TOP OF THE TABLE ANNUAL MEETING2014 - SEPTEMBER 17 TO 20, SAN FRANCISCO, CALIFORNIA

MDRT EXPERIENCE2016 - JANUARY 28 TO 30, HONG KONG

Million Dollar Round Table325 West Touhy Avenue, Park Ridge, IL 60068 USAPhone: +1 847.692.6378 Fax: +1 847.518.8921 Website: www.mdrt.org

“You can’t get life insurance success out of a textbook.”From “The other side,” Page 24

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WEB EXTRASwww.mdrt.org

n WEB EXCLUSIVE Read about a U.S. veteran’s benefit in “Aid and Attendance” available only on www.roundthetable.org.

n ARCHIVED WEBINARS Learn about the topics of business continuation, study groups and business processes by viewing archived versions of recent webi-nars on www.mdrt.org/connect.

n WHOLE PERSON QUIZ Highlight imbalances in your life to target for change in the Whole Person section at www.mdrt.org/WholePerson.

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ROUND THE TABLE | SEPT/OCT 2014 | VOL 42, ISSUE 5

PRACTICE7 IDEAS

10 WHEN SECOND IS BEST Create a prospecting system

that allows you to step in when a potential client becomes unhappy with their advisor.

12 IRRESISTIBLE LEADERSHIP Engage with your staff and build

an environment of trust by follow-ing three steps.

14 CALLING ALL AGES Connecting with individuals ages

20 to 90 requires understanding the good, the bad and the ugly about each generation.

18 TIPS & TECHNOLOGY

20 RETAIN AND MOTIVATE Knowing what your employees

want can encourage their long-term commitment to your business.

22 THE ADVISOR’S PLAN Why successful financial advisors

don’t follow their own business continuation advice.

24 THE OTHER SIDE A producer shares a timeless

message of not losing yourself in work.

PEOPLE26 IDEAS

28 AT THE LEADING EDGE MDRT President Banks stays

ahead of the curve to meet chal-lenges and accept opportunities head-on.

32 TARGETED EDUCATION Christensen found success in the

senior market through intense focus on their needs.

34 IMPLEMENT FOR IMPACT Multiple sources of ideas help

Clairmont build systems to sustain and grow his practice.

36 SETTING A FINANCIAL PATH Shub looks to protect his clients

from the type of financial losses he’s seen firsthand.

38 TO BE VALUABLE Two members in Taiwan encourage

MDRT members to work together.

40 Q&A: JOHN L. GILFOIL, CLU, CFP

28

32

IN EVERY ISSUE2 WELCOME

5 IN THE NEWS

6 IN MEMORIAM

55 TRUE TALES

56 LOOKING BACK

ON THE COVER

MDRT President Caroline A. Banks, APFS, is photo-graphed in London, England.

Photos by: Nicholas Liseiko

34

INSIDE MDRT42 IDEAS

43 MEET YOUR LEADERS The 2015 Executive Committee,

Management Council and commit-tee Chairs are announced.

46 2015 MCC CHAIRS ANNOUNCED The worldwide network of regional

contacts for current and prospec-tive members is announced.

47 MDRT FOUNDATION The new MDRT Foundation Presi-

dent and officers announced.

50 INSTANT ACCESS Unlock the best of the Annual

Meeting in the MDRT Video Club today.

52 1971 PRESIDENT: RICHARD G. BOWERS SR., CLU

MDRT’s 1971 President died July 17. Learn about his achieve-ments within MDRT.

54 EXPANDED SERVICES A new director is named, while

a longtime employee takes on a new challenge.

SEPTEMBER/OCTOBER 2014 | ROUND theTABLE.ORG 1

46

I have a high implementation quotient, you would say.

— Tim Clairmont, Page 34

2 ROUND theTABLE.ORG | SEPTEMBER/OCTOBER 2014

WELCOME

Kathryn Furtaw Keuneke, [email protected]

Looking forwardIt’s a pleasure to introduce you to this newly redesigned issue of

Round the Table. As you flip through the pages, you’ll find every-thing you love about your MDRT magazine, but with an updated

look that is easier to navigate. We’ve structured each issue in three main sections:1. Practice. Turn to this section for ideas you can put into practice. We

are committed to serving producers at every career stage. Whether you’re hungry for prospecting ideas, technology tips or strategies for managing your practice, or you’re seeking a partner to help you grow or pass on your business, you’ll find answers here you can implement today.

2. People. The techniques and success stories on these pages are from individuals just like you who have achieved success in this profession. They tell us how they got where they are, how they engaged a new mar-ket, or how they manage to both lead a successful business and incorpo-rate balance as a Whole Person.

3. Inside MDRT. We’ll remind you of the benefits you receive as a member of the Round Table, including the resources and programs planned for you.

We hope these changes will improve the way you read each issue and help you glean the best of what your fellow MDRT members have to offer.

In this issue, meet your new MDRT President on Page 28. Caroline Banks begins her year in office by unveiling MDRT’s strategic plan, ex-plaining the organization’s guiding principles and how they will shape the long-term direction for the Round Table.

Beginning with the next issue, members of the MDRT Executive Committee (see their bios on Page 43) will discuss the Round Table’s future in their editorial at the front of the magazine. They will explain how they’re taking steps today to achieve MDRT’s long-term goals.

Our digital presence has a new look, as well. Visit us online at www.roundthetable.org to read this issue and access special content only available there.

While the content in this magazine is ultimately funneled through MDRT headquarters in Park Ridge, Illinois, the ideas come from all of you around the globe. The words on the following pages are yours. Please, let us know if we’re meeting your needs and if you have sugges-tions for what else you’d like to see. We look forward to your input.

Thank you for reading,

1210

MICHAEL MORROW, CFP has found that individuals who already have a relationship with another advisor are still strong prospects. In “When second is best,” he explains how to market to them, knowing they will likely one day be ready to switch over to you. Morrow is a seven-year MDRT member from Thunder Bay, Ontario, Canada. Contact him at michael@ideas foradvisors.com.

5522

PAUL WHITE, PH.D. explains that few advisors have done succession planning for their own business. In “The advisor’s plan,” he proposes an action plan for advisors. Based in Wichita, Kansas, White serves as a family business coach to develop and execute wealth trans-fer plans, and diminish tension around busi-ness succession issues. Contact him at [email protected].

MEREDITH GAIL FINE has seen what can happen to a family without life insurance. In “A simple policy,” Fine shares her first-hand experience of helping a friend make ends meet after the unfortunate passing of her husband, who lacked life insurance. Fine is a two-year MDRT member from New York, New York. Reach her at meredith [email protected].

ALESIA LATSON thinks leaders should create a trusting envi-ronment. In “Irresist-ible leadership,” she describes simple ways to increase employee engagement. Latson is founder of Latson Leadership Group, a consulting firm in Boston, Massachusetts. Contact Latson at alesia@latsonleader shipgroup.com or visit www.latsonleadership group.com.


OFFICIAL PUBLICATION OF THE MILLION DOLLAR ROUND TABLE

ROUND TABLEthe

Editorial Staff

EDITOR: Kathryn Furtaw Keuneke, CAEASSISTANT EDITOR: Scott Rogers

EDITORIAL ASSISTANT: Abby PuchnerART DIRECTOR: Brandon Lane

COVER DESIGN: Michael Dorich

Editorial Team

CHIEF EXECUTIVE OFFICER: Stephen P. Stahr, CAE STRATEGIC ENGAGEMENT DIRECTOR:

Pamela Brown, CMP, CAEMEDIA RELATIONS COORDINATOR: Jennifer Schimka

MDRT Executive Committee

PRESIDENT: Caroline A. Banks, APFSIMMEDIATE PAST PRESIDENT: Michelle L. Hoesly, CLU, ChFC

FIRST VICE PRESIDENT: Brian D. Heckert, CLU, ChFCSECOND VICE PRESIDENT: Mark J. Hanna, CLU, ChFC

SECRETARY: James Douglas Pittman, CLU, CFP

To contact editorial office:

MAIL: MDRT, 325 West Touhy Avenue, Park Ridge, Illinois 60068 USA

PHONE: +1 847.692.6378 Fax: +1 847.518.8921

EMAIL: [email protected]

WEBSITE: www.roundthetable.org

Round the Table (ISSN-0161-7125) is published bimonthly by the Million Dollar Round Table, 325 West Touhy Avenue, Park Ridge, Illinois 60068 USA. Subscription rate is included in MDRT mem-bership dues: $20 for nonmembers in the United States, $30 for nonmembers outside the United States. Periodicals postage paid

at Park Ridge, Illinois, and additional mailing offices. POSTMASTER, send address corrections to Round the Table, 325

West Touhy Avenue, Park Ridge, Illinois 60068 USA.

© 2014 Million Dollar Round Table. Round the Table is published for the use of Million Dollar Round Table members. All rights reserved. Round the Table is not to be used or loaned for any commercial purposes or other causes, nor

is any portion of it to be reproduced without the express, prior written permission of the Million Dollar Round Table.

Round the Table is provided as an educational and information-al service by the Million Dollar Round Table. The Million Dollar Round Table does not guarantee the accuracy of tax and legal information and is not liable for errors or omissions. You are urged to check with tax and legal professionals in your state,

province or country. MDRT also suggests you consult local insurance and security regulations and compliance departments,

pertaining to the use of any new sales material with clients.

MDRT®, Million Dollar Round Table®, Top of the Table®, Court of the Table®, MDRT Foundation®, The Premier Association of Financial Professionals®, ConneXion Zone® and Global Gift Fund® are all

registered trademarks of the Million Dollar Round Table®.

Round the Table is printed in USA with soy-based inks on elemental chlorine-free paper.

202014

BRYCE SANDERS shares tips for com-municating with all generations in “Calling all ages.” As president of Perceptive Business Solutions Inc. in New Hope, Pennsylvania, Sanders provides high-net-worth client acqui-sition training to the field. He is the author of the book “Capti-vating the Wealthy Investor.” Contact him through his website: www.perceptivebusi ness.com.

DIANE L. MCCURDY, CFP, EPC and THEODORE S. RUSINOFF, CFP have learned that the best employees are worth fighting for. In “Retain and motivate,” they provide 10 ways to encourage your staff to make a long-term commitment to your business. McCurdy is a 32-year MDRT member from Vancouver, British Columbia, Canada, with 16 Court of the Table and five Top of the Table qualifications. Rusinoff is a seven-year MDRT member from Hudson, Ohio, with one Court of the Table and three Top of the Table qualifications. They both were members of the 2014 Staff Operations Committee. Contact McCurdy at [email protected] and Rusinoff at [email protected].

HAVE SOMETHING TO SAY? Say it in Round the Table magazine — an easy way to share your ideas with fellow MDRT members!

There are lots of ways to contribute:l SUBMIT an article topic or idea

l VOLUNTEER to serve as a source in your area

of expertise

l SHARE a professional accomplishment

Send your ideas to [email protected] for possible use in Round the Table. See what we’ve published recently by visiting www.roundthetable.org.

Introducing the new Round the Table website.

Visit www.roundthetable.org to read the digital edition and enjoy Web-exclusive content.


IN NEWSthemember news | awards | calendar | in memoriam

Mark your calendar to include these important dates:

September 17 Top of the Table Annual Meeting begins in San Francisco, California

November 1 MDRT membership applications mailed

March 1, 2015 Completed MDRT

membership applica-tion must be mailed to

MDRT, postmarked on or before this date, to avoid

$200 additional fee

June 14, 2015 MDRT Annual Meeting begins in New Orleans,

Louisiana

MDRT CALENDAR

COVER PHOTOScott Roger Lebin, RFC, a 14-year MDRT member from Geneva, Illinois, was featured on the cover of the July 2014 issue of Retirement Advisor magazine. In the article, Lebin shared how he’s learned the value of maintaining perspective and remaining engaged in life, and how he’s passed these lessons to his clients.

Linn honoredGail Linn, CFP, LUTCF, a 10-year MDRT member from New York, New York, was named one of the “20 Women in Insurance You Need to Know” by LifeHealthPro.com, along with six other MDRT mem-bers. The article identified women for their thought leadership, contributions and successes. Linn was mistakenly left out of this announcement in the January/February 2014 issue of Round the Table.

Wealth manager of the yearJohn T. Cross, a 37-year MDRT member from Hertfordshire, England, was named the wealth manager of 2014 by the City of Lon-don Wealth Management Awards. These awards rec-ognize and promote quality of service from wealth man-agers and stockbrokers.

Satoskar profiledRajesh Satoskar, an 11-year MDRT member from Mum-bai, India, was featured in the May 30 issue of Forbes India magazine. Satoskar is profiled in this special edition of the magazine focusing on the business leaders of India. In this article, Satoskar shared how the growing life insurance industry in India is trans-forming the lives of millions across the country.


IN THE NEWS

IN MEMORIAMRichard G. Bowers Sr., CLUKeokuk, IowaAge: 94, MDRT: 58 years(See Page 52) William H. Craddock, CLU, ChFCCharlottesville, VirginiaAge: 95, MDRT: 49 years Thomas C. Cundy Fort Lauderdale, FloridaAge: 80, MDRT: 53 years

John M. De Borde III, CLU, ChFCAtlanta, GeorgiaAge: 87, MDRT: 58 years Robert L. Deets, CLU, ChFCAllentown, PennsylvaniaAge: 69, MDRT: 24 years Cleo F. Edwards, CLU, ChFCCedar Rapids, IowaAge: 93, MDRT: 59 years Colin M. Govan, CLUHampton, VirginiaAge: 86, MDRT: 49 years

Earl R. Hamm Jr., CLU, ChFCEastlake, OhioAge: 71, MDRT: 24 years Mina IsaJakarta, IndonesiaAge: 44, MDRT: 4 years Yoshimasa Kato, TLCTokyo, JapanAge: 54, MDRT: 15 years Buddy Leake, CLUOklahoma City, OklahomaAge: 80, MDRT: 45 years

Donald R. MartinCoeur d’Alene, IdahoAge: 88, MDRT: 45 years Sidney M. Miller, CLUNew York, New YorkAge: 86, MDRT: 56 years Abe WoodsonSan Mateo, CaliforniaAge: 79, MDRT: 10 years

Best places to work

McTigue Financial Group, run by John W. McTigue, CLU, a 31-year MDRT mem-ber from Chicago, Illinois, was named the seventh-best place to work in Chicago by Crain’s Chicago Busi-ness. McTigue’s agency was selected for allowing its employees to forge their own careers while receiv-ing ample assistance when needed.

Keystone Award

Brian E. Worrell, LUTCF, a nine-year MDRT member from Wyomissing, Penn-sylvania, received the 2014 Keystone Award, presented by the National Association of Insurance and Financial Advisors–Pennsylvania (NAIFA–PA). The Keystone Award is NAIFA–PA’s high-est honor and is presented each year to a member in recognition of their service to the association and their work on behalf of the insur-ance industry.

Passion after workSeymour Petrovsky, CLU, a 52-year MDRT member and the 1991 MDRT President from Prescott, Arizo-na, was profiled in The Daily Courier, a newspaper in Prescott, for his work raising defibrillator awareness. In the article, Petrovsky’s efforts from the past several years as a volunteer for the Prescott Citizens on Patrol are detailed as he worked with the fire department to mark where all the defibrillators are in most public and business locations so that dispatchers would be able to direct those in need to their location.


When you see a client for the first time, what’s going through his mind is, You’re going to sell me, and I don’t want to buy anything. So, the first task is to disarm your prospec-tive clients. I tell all of my clients within the first 10 minutes: “Look, I’ve got lots of products and services to offer you. I ha-ven’t any idea which ones

are of any benefit to you, and I wouldn’t insult you by trying to tell you which one it is at this stage of the game.

“I’m a little bit like a plumber. A plumber walks into your house with a big bag. He doesn’t empty the bag on the table and start selling you bits and pieces from his bag. Not at all. He puts the bag on the floor and has a conversation with you. ‘What’s the problem? Where’s the problem? It is upstairs?’ When you’ve ascertained the problem, he takes the correct tool and fixes the problem. Is that right? That’s exactly what I do. I’ve got all kinds of products and services to offer, but until I know what’s of benefit to you, there’s no conversation. Do you mind if I ask you a lot of questions today? I won’t give you any answers, but I’ll use that as a platform for our next meeting.”— Barry Rebuck, TEP, EPC, Markham, Ontario, Canada, 23-year MDRT member

LIKE A PLUMBER

COMPRESS YOUR TIME FRAMEThis is an idea I heard many years ago that has really helped me in my career. Consider what you would like to accomplish 10 years from now. Think about that, and then shorten the time frame to two years. That exercise got me thinking in a big way from a long-term, then short-term perspective. By com-pressing the time frame, you

can accomplish your goals much more quickly, and you also stretch your mind.

I added another step. If you incorporate the seven parts of MDRT’s Whole Person philos-ophy into your planning, then you’re planning for your life.— Julian H. Good Jr., CLU, ChFC, Metairie, Louisiana, 2011 MDRT President and 31-year member

“I will not recommend something you cannot afford, and I will not recom-mend something you do not need.”

Very simple, but it makes a big impact.— Hitesh P. Parikh, Chalfont, Pennsylvania, 3-year MDRT member

This question helps to point out the need for life insurance:“Would you mind if I asked you a question? Can you think of any circumstances when someone has died, when the beneficiaries would have been better off without the life insurance?”Nobody ever can. In every case, the beneficiaries either used it for income, paid off a debt, educated their children or — in the worst-case scenario, where their own personal needs were already taken care of — they gave the money to charity.— Brian H. Ashe, CLU, Lisle, Illinois, 2000 MDRT President and 43-year member

USES FOR LIFE INSURANCE

When clients stop work, they are actually gradu-ating to a new lifestyle. So, I’ve taken the word “retirement” out of my vocabulary, replacing it with “graduation.” I’ll ask clients: “How are you going to graduate when you stop work? Are you going to graduate with first-class honors? Will you graduate with distinction, or just barely

get a pass and have to rely on Social Security?”— Anthony J. Carlyon, FAFA, F Fin, Cronulla, New South Wales, Australia, 24-year MDRT member

RETIREMENT = GRADUATION


MINDSTORMING

I learned early in my career that the client is forming an opin-ion of you every step of the way. They’re forming an opinion before they do business with you, and even afterward.

After the first meeting, I go into my office and write them a handwritten note on a personal card that has my name on it. It says something like, “It was a pleasure meeting with you this morning. I welcome the opportunity to be of service in helping you plan for your financial legacy. I look forward to following up next week. Have a great weekend.”

The key here is “welcome the opportunity to be of ser-vice.” That’s huge. It reinforces that they’re getting helped and there is service. The note is handwritten, there’s a stamp, and everything is signed and mailed out the day of the meeting. They get the card the next day, so in their mind, the relationship is solidified.— Evan Fabricant, Glen Allen, Virginia, 4-year MDRT member

I have used a technique called mindstorming to solve problems I can’t seem to get my arms around.

The idea is to find a quiet place where you will be undisturbed. At the top of a pad of paper, write down whatever your challenge is. An example might be, “How can I get more clients?” Write the numbers 1–20 down the

page. Write 20 answers to that problem, setting all judgment aside. The first few are going to be easy to think of, but do not leave that room until you have come up with 20 ideas. What I’ve found is right around No. 13 or 15, you’ll get the aha moment you’ve been searching for.— Katherine L. Hurley, Falls Church, Virginia, 4-year MDRT member

Ask clients: “If there’s one thing I could be doing better, what

would that be?”— Larry J. Glanz,

Farmington, Michigan, 16-year MDRT member

EDUCATE FIRSTDid anybody teach you anything about life insur-ance when you were in high school or in college? The answer is no. You learned about life insurance when you came into the life insurance business. There-fore, what do you think your client knows about life insurance? Most likely noth-

ing. Instead of trying to sell immediately, I try to educate and explain what life insur-ance is and how it works. This builds my prospects’ confidence in me, and they understand I have a concern for their future.— Lawrence G. Katz, CLU, ChFC, Houston, Texas, 58-year MDRT member

HANDWRITTEN NOTE

IDEAS HAVE VALUEWhen I am explaining our fee structure to prospects or clients, I explain it this way: “We charge a fee for our advice because ideas have value. Does that sound fair enough?”

The answer is always yes. No one will disagree with the statement that ideas have value. I just started charging fees this year and have had absolutely no pushback when explaining we charge for our advice because our ideas have value.— John J. Demboski, CFP, Santa Barbara, California, 10-year MDRT member


Waiting in the wings 10 | 3 keys to leadership 12 | Communicate by generation 14 | Tips & Technology 18 Staff motivation tips 20 | Continuing your business 22 | Whole Person circa 1947 24

in

PRACTICE

EMPLOYEES DISENGAGED

13% of employees across 142 countries feel engaged in their jobs. Actively disen-gaged workers — those who are potentially hostile to their organizations — outnumber

engaged employees by nearly 2-to-1.

Source: “State of the Global Workplace,” Gallup, 2013

SAVINGS SHORTFALL

57% of middle-market American households (69% of households with children) don’t

save regularly. Source: “U.S. Consumers Today: The

Middle Market,” LIMRA, 2014

LIFE INSURANCE OWNER-SHIP BY GENERATION

Fewer Gen Y consumers own individual life insurance (34%) than Gen X consumers (45%). More than half of baby boom-

ers report owning individual life insurance (52%).

Source: “U.S. Consumers: The Generations,” LIMRA, 2014

STRONGER TOGETHER

Producers are more profitable

in ensemble rather than solo practices.

Source: MDRT Bottom Line Survey, 2012


PRACTICE

Create a prospecting system that allows you to step in when a potential client becomes unhappy with their advisor.BY MICHAEL MORROW, CFP

Whether you are a seasoned advisor or new to the industry, nothing is more important than attracting a

steady stream of prospects. We all have to put ourselves in front of the public to ensure the success of our practice. Prospecting is necessary to a growing, thriving business in our profes-sion, as we aim to create long-term clients. For that reason, we need to be comfortable with the uncomfortable. For many of us, approaching unfamiliar people and asking for their business takes us out of our comfort zone — especially if we’re rejected. The sooner we can accept realis-tic expectations, the better off we’ll be.

As advisors, we tend to be impatient if we don’t land the prospect within a couple of at-tempts. We often are ready to move on. However prospecting requires motivation, dedication and perseverance. With initial contact, there is always the possibility of the prospect already having a financial advisor, but don’t give up. Your goal should be to get permission to stay in touch with them. You can simply say, “I’m really glad you are happy with your current advisor, but would it be OK to stay in touch with you in case something changes?” Your expectation should be to get permission to stay in touch, not get an appointment. This expectation will make the process easier for you.

Once you have their approval, they join the prospect pipeline. You can begin to slowly demonstrate the added value your practice gives, which they may not be receiving from their advisor. This is easy, inexpensive and effective. You’ll begin to be viewed as advisor No. 2, and your efforts will continually test the satisfaction level with their current advisor. If they become unhappy with the services M

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“We are happy to be waiting in the wings

and hope when the need

arises, you will call us.”

they are receiving from their current advisor, they know you’ll be available to help, and then they’ll be on their way to seeing what an excep-tional organization you have. The belief that time is the only deterrent to becoming their primary advisor will garner the enthusiasm necessary for success.

You need to stay dedicated and patient, but also stay in contact with the prospect in a non-aggressive way. Don’t overload them with too much information or consistently reach out, as this can push them away. There are many strategies to help you get and keep your name in front of your desired prospects. Mail financial publications, send newsletters and email blasts, or hold worksite workshops. To effectively pros-pect, you must do your research and understand what they want, how they feel and what matters most to them. Be ready to educate, not sell. The attention you give and the way you correspond will help you stand out.

Systematic processProspecting is both an art form and a science. Having systematic and planned prospecting processes will garner the best results. Plan your efforts to avoid procrastination and simple for-getfulness. Choose your strategy, and place it in your prospecting calendar. Consider adding the following to your current processes:

n Hard-copy mailings. Fewer businesses are mailing paper, so the ones that do get noticed. Stand out with hard-copy newsletters, industry magazines, term rate sheets, handwritten cards, company fliers or postcards.

n Social media. Social media platforms are an easy and cost-effective way to connect with pros-pects and provide an ideal environment for social-izing, sharing information and providing insight. You can also research your prospect and learn what could start great conversations. Connect on LinkedIn, join groups they’re in and participate. Follow them on Twitter. Become an active voice by commenting, sharing or liking their posts.

n Email. Another cost-effective way to reach prospects, email provides instant access for them to learn about your company with embed-ded links to your website. This method allows

you to know how your marketing efforts are working with email metrics. You can tell if they opened your email, clicked through to your website and what they did once they got there. Newsletters, industry updates, term rate sheets, blog posts or even a general email message are all effective email prospecting methods.

n Wow. Take your prospecting methods to a new level and really impress by presenting them books on finance, coffee for the office, restaurant gift cards and movie passes.

These strategies will slowly create a wedge between the prospect and their current advisor. You want the prospect to think of you first when their needs and expectations are not met. Re-cently, I was in a position to find a new general insurance broker. There was no one waiting in the wings, no advisor No. 2 for me to turn to. If a broker had been marketing to me all along, I would have called them. My theory on being advisor No. 2 was solidified.

Your ability to grow your business is based on starting new relationships through prospecting. New relationships need to be nurtured, and con-sistent nurturing will open opportunities. Con-sistent nurturing proves that you are different from your peers who have given up. Effective prospecting can be predicted by numbers; that is, if you provide consistent value as advisor No. 2 to 100 prospects, in five years how many will have become clients? What result would make your efforts worthwhile?

The next time a prospect tells you they are currently satisfied with their advisor, say, “We are happy to be waiting in the wings and hope when the need arises, you will call us.” Don’t get discouraged if this happens. Focus on providing value and nurturing the relationship, and believe in the potential positive outcomes of our efforts.

We need to be confident approaching people in our community or business sphere who could benefit from our services. Having lasting prospect relationships is part of running our business. There is no single best technique to prospect, but from my experience, I have found if I can’t be an immediate advisor, positioning myself as advisor No. 2 has led to great success. RTT


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PRACTICE

“This is just a listening meeting. For 15 minutes, I just want to hear your ideas, your concerns or anything else you’d like to share.” Then, let them talk. Don’t interrupt or dominate the conversa-tion. In fact, only speak when the other person asks you a question. The rest of the time, just listen and take notes. After the person is done talking, paraphrase what you heard. Taking only 15 minutes out of your day to listen will help you forge a greater connection with your staff and make a huge difference in employee engagement.

2. Disagree with graceDisagreements at work are inevitable. The key is how you handle them. Too often, leaders come across as harsh when they disagree, inadver-tently making employees feel inferior or that their ideas are without merit. So rather than abruptly tell people things like, “No, that will never work,” or “You obviously don’t understand the full situation,” when you disagree with them, start by acknowledging and validating the other person’s perspective.

This requires you to listen attentively and then legitimize the other person’s point of view. It is

Leadership is a tough job. Not only do you have to be adept at managing multiple priorities, you also have to possess expert

people skills. After all, regardless of industry, a leader is only as good as his or her team. Without the buy-in and respect of your employees, you’ll have a difficult time accomplishing the organi-zation’s goals. The challenge, then, is figuring out how to be irresistible to your team — how to create the conditions by which people can’t resist your message and vision, and therefore want to align and partner with you.

Becoming irresistible requires that you attract and connect with people, which naturally results in trust and loyalty. That’s why the key for any leader is to create the conditions and ex-periences by which people want to engage with you. Following are the top three ways to build engagement with your staff.

1. Build rapportThe best way to build rapport with people is to simply listen to them. When people feel listened to, they are more likely to trust you and are more eager to engage with you. To make listening a priority in your role, start doing monthly listening tours. These do not have to be long sessions — 15 minutes is enough. The point is to actually sched-ule time where you meet with people informally and just let them talk.

At the beginning of the meeting, tell them,

Engage with your staff and build an environment of trust by following three steps.BY ALESIA LATSON

Irresistible

leadership


most effective when you can provide at least three points of validation — that’s how the person is more likely to feel like you actually heard what they said. So, for example, if someone offers an idea for increasing profits that you think is too risky and won’t work, you could say something like, “I see that your proposal is a reflection of your commitment to finding viable options that will increase our profitability (first validation). It’s evident you’ve put a lot of effort into taking a look at the numbers (second validation). And, you’ve of-fered a compelling business case for us to consider (third validation). We’re aligned in that we’re both looking for a committed solution. Where we differ is in how aggressive the plan should be and how much risk we should take on. Maybe that’s some-thing we can talk about.” Remember, the magic number is three points of validation.

At this point, you can ask some open-ended questions to get a better idea of the employee’s thinking, or you can agree to disagree. But it’s the validation that enables you to disagree with grace. Now, rather than shutting down the conversa-tion, you’re engaging the employee. This is what creates irresistibility. When the employee walks away from that meeting, they may not have got-

ten what they wanted, but they weren’t defeated. And that’s huge to the engagement factor.

3. Offer acknowledgment and praiseToo often, leaders are so busy, stressed and overwhelmed that they forget to acknowledge people. But human beings crave acknowledg-ment and want to feel like they are making a meaningful difference in some way. Offering acknowledgment and praise goes a long way to building engagement.

Acknowledging someone doesn’t mean gushing over them and touting unwarranted superlatives. It’s also not about empty phrases like “Good job.” Offering acknowledgment and praise works best when you’re factual and pointing out specifics that made an impact. For example, instead of tell-ing someone, “You did a good job on that report,” which lacks any type of facts or specifics, you could say, “I wanted to compliment you on your report. It detailed the topic in a clear way, gave a strong call to action at the end, and was visually very appealing in the layout.” The more specific you can be with your praise, the more meaning-ful it is for the employee. In addition to making the person feel important, your words are giving them clear feedback on what success looks like so they can duplicate it in the future.

Remember that acknowledgment and praise should occur frequently. You can offer a word of acknowledgment in passing at the water cooler. Often, it’s those little interactions that leave a lasting impression.

Attract the bestIf you want to be one of those leaders that people can’t seem to resist — the kind of leader who has loyal employees and a strong environment of trust — then you need to focus on these three employee engagement practices. Not only will your current employees find you irresistible, but you’ll also have a steady stream of eager poten-tial employees (the best of the best) who want to work with you. Ultimately, the more engagement and partnership you have with your team, the more rewarding the work experience will be for everyone. That’s when the organization will experience true and lasting success. RTT

The more specific you can be with your praise,

the more meaningful it

is for the employee.

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Should you ask for a referral via email or in person? Is texting an acceptable form of client contact? The rules for communica-

tion in the business world are changing. What is acceptable to you might not be preferable to your prospects or clients. Often, these distinctions change from generation to generation. Although exceptions exist, certain communication chan-nels are more comfortable for people in specific age groups. Before we market to prospects or ask existing clients for referrals, we need to understand what differentiates them from other generations — especially our own.

Every generation has defining characteristics. The good are the positive perceptions. The bad are the negatives attributed to them. The ugly are the vexing problems they face, areas where you might be able to help. Once you understand this background, it becomes easier to determine your approach.

Silent generation: 1925–1945People born in this period are approximately 70 to 90 years old today. There are about 55 million of them, surprisingly not all retired. Many are continuously reinventing themselves.

The good: They came of age during America’s great postwar age of prosperity, the 1950s and 1960s. Many served in World War II or the Korean War. This taught them the importance of chain of command. They often worked at the same compa-ny their entire working life. Unions played a large role in the workforce. People were well-paid. The GI Bill provided an excellent education at minimal cost. They live comfortably in retirement with defined-benefit pension plans.

Connecting with individuals ages 20 to 90 requires understanding the good, the bad and the ugly about each generation.

BY BRYCE SANDERS

PRACTICE

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The bad: They have a real concern about losing money. Most live a comfortable lifestyle; growth isn’t an issue. Their nest egg is their safety net. This rational aversion to risk means growth investments aren’t as attractive.

The ugly: They worry about their health. The 2011 PBS story “How Much Do We Spend on End-of-Life Care?” explains “Nearly one-third of terminally ill patients with insurance used up most or all of their savings to cover uninsured medical expenses such as home care.”

Let’s assume they are healthy optimists. Then it’s likely intergenerational wealth transfer is their major concern; estate planning gets their attention. They may want to provide a college ed-ucation for their grandchildren and great-grand-children. If they were traditional bond buyers, replacing lost income in a low-interest-rate environment might be their major concern.

How do they get information? They grew up getting letters and phone calls, but many seniors are very comfortable with email. They watch lots of television.

Reaching prospects: They open their mail and react well to personalized letters. They are brand-aware. They expect a high level of service. Try to get them talking about the quality of their current advisory relationship.

Reaching clients: You call and meet face-to-face regularly. If your age is near theirs, they may be concerned you will retire soon. Talk about your succession plan. They have friends whose advisor has retired or takes them for granted. Would they introduce you?

Reaching family: Talk face-to-face. Lean on the reputation of your firm. They might dwell on a huge issue. If you know the issue, meet privately, acknowledge it weighs on their mind, you’ve thought long and hard about it. You might have a solution.

Baby boomers: 1946–1964In the U.S., GIs returned from World War II and immediately focused attention on having babies. There are about 76 million baby boomers about 50 to 70 years old.

The good: They grew up in prosperous times. Real estate appreciation has been their friend.

Many are wealthy, active and physically fit. They saw John F. Kennedy assassinated, Woodstock and the Vietnam War. They danced to rock ’n’ roll and the Beatles. They wanted to change the world. They are well-educated — college was cheap. Many enjoyed lifetime employment.

The bad: A 2009 Zogby poll of boomers indi-cated 42 percent of respondents felt consumer-ism and self-indulgence are their legacy. Other studies imply baby boomers are micromanagers, focus on material success and put work first.

The ugly: Recent corporate layoffs have come at the worst time for boomers. They are deplet-ing their savings after being laid off. Fortunately, most boomers are still working. Your 50- to 70-year-old prospect is very worried about their retirement. They probably have a 401(k) at work. They should collect Social Security. That’s not enough. It’s likely they will be focused on putting money aside in tax-deferred vehicles. Long-term care is a concern, too. They may have “boomerang kids” who left the nest and re-turned home because of the tough job market.

How do they get information? They read mail and answer the phone; however, email was a major technology leap for this generation. They access it on desktops, smartphones or tablets. The benefit and downside to email is it’s so easy and cheap. They are inundated, so paper mail stands out.

Reaching prospects: Go for personal intro-ductions. At this stage of their life, they are wired in and know everybody. They won’t act as your press agent, but they can easily arrange so-cial introductions. Show them short lists of local people. “This is the type of person I may be able to help.” Or “This is the type of person I want to know,” followed by, “Would you introduce me?”

Reaching clients: Face-to-face reviews. They have spent their working life being accountable and reporting actual versus target numbers. They expect the same. Set expectations. Focus their attention on progress to goals.

Reaching family: The best route is an articulate family member who is already a client. Every-one needs to know what you do. Without much prompting, they can help make this happen. Be respected as a problem solver. Layoffs or impend-ing retirements are fertile fields for referrals.

Everyone needs

to know what you do. With-out much

prompting, they can

help make this happen.

>>


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Generation X: 1960–1980The generation following the baby boomers are now ages 35 to 55. The U.S. census counts about 82.1 million.

The good: Their high-earning, dual-income parents gave them a pretty good life. They are well-educated, physically active, and spend the most time of any generation volunteering and giving back. While baby boomers wanted to change the world, Gen Xers are OK working within the system. They are entrepreneurs.

The bad: They are likely the first recent generation to have less earning power than their parents at the same stage of life. Their employ-er loyalty is significantly reduced. They can be considered apathetic and angry.

The ugly: As they pass their 45th birthday, re-tirement issues keep them awake at night. They aren’t making the money their parents did, yet they plan to send their children to college. What if something happens to them? Life insurance fills a need.

How do they get information? Smartphones are preferred to landlines. They are more com-fortable with texting than previous generations. They were around for social media but didn’t grow up with it.

Reaching prospects: If they have problems saving for retirement or college education, they talk about it with peers. Advisors need to listen and position themselves as problem solvers. Your friends need to be able to explain what you do and why you are good at it.

Reaching clients: They often prefer “coach-es” to “advisors.” They want collaboration, not instruction. Although they communicate by text, you can’t do business that way. Can texting let them know you need to talk or see them?

Reaching family: If you are a similar age, you faced similar problems. Sit down, peer to peer, to explain you are concerned about the college education issue and found a solution. Recognize they face a similar issue. What are they doing about it?

Generation Y: 1980–2000They are often called millennials or Generation Me. There are about 88.5 million out there.

The good: They are civic-minded and aware of environmental issues like global warming. They see injustice in the world. Wealth is im-portant to them.

The bad: They are often called self-absorbed or entitled. “Trophy kids” were often pushed by their parents to excel in sports and academics. Their job prospects are significantly lower than their parents or grandparents. This requires higher education and advanced degrees.

The ugly: They need to accumulate wealth be-cause it will be necessary to educate their children and make the down payment to get on the proper-ty ladder. They may be headed back to school.

How do they get information? They came of age along with technology and the Internet. Having ditched their landline phone, they rely on their cell phones. They text a lot. They are less trusting of brands than their parents or grandparents. They prefer peer reviews, going to sites like TripAdvisor, Angie’s List and Zagat. Social media sites like LinkedIn and Facebook play a big role.

Reaching prospects: Social media channels can tell you who knows who, allowing you to ask for personal introductions to people you know. These can be business-specific, assum-ing the need is apparent. Raising people’s awareness of what you do is important. Unfor-tunately, members of this generation often feel information, advice and transactions should be free.

Reaching clients: Like Generation X, they want coaching and collaboration, not advisors telling them what to do. You must meet face-to-face at least once a year. Focus their attention on their portfolio. In the meantime, phone con-versations are fine. You need to hear their voice confirming trading instructions or get a physical signature on documents.

Reaching family: If they respect wealth, intro-ductions from wealthy relatives are important. These Gen Y folks are likely younger than you. They respect success. Remember: People love to buy; they dislike being sold.

Regardless of age, gaining name recognition and getting on the radar is key. Reach out to them enough, and they’ll know who you are. RTT

These Gen Y folks are likely younger than you. They respect success.

PRACTICE

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TIPS TECHNOLOGY&life hacks | apps | time-savers


ON-THE-GO TEMPERATURE AUTOMATION

The Honeywell Wi-Fi Smart Thermostat With Voice Control offers users a unique way to adjust your home temperature settings remotely. Besides offering simply another option to adjust your home tempera-ture, the device alerts the user to extreme temperature changes in the home, boasts a voice activation component and gathers information about other settings in the environment, like humidity, local weather conditions and more.

The Smart Thermostat is perfect for keeping tabs on vacation homes or ensuring pets are comfortable, and is offered in a full-color display. Users can set up alerts for filter changes, extreme temperature fluctuations and more from any Wi-Fi- enabled location.

Take advantage of the device’s range of programmable modes to save on energy costs and enjoy ultimate home comfort. The Smart Thermostat is available for $299 through Honeywell’s website, http://wifithermostat.com.

Track your valuablesWhile it’s useful to download a smartphone app that can track your device should it go missing, the fact is many of us misplace more items than just our phones — what about belongings like keys, purses, wallets, luggage or other non-electronics? TrackR, developed by Phone Halo, has put together a suite of easily portable products compatible with iOS and Android systems that cut down on time-intensive scavenger hunts for such lost items by wirelessly transmitting to your phone or tablet from the item’s location:

n The Wallet TrackR device takes up a space a few credit cards thick, easily fitting inside any wallet. Boasting a two-year battery life, you have the option of purchasing up to four devices — starting at $30 for one.

n For smaller items like keys, TrackR manufactures a circular tracker with double-sided adhesive you can easily affix to key rings, remote controls and more.

n The inSite product offering pairs both features from the above two — a slightly smaller device that fits in your wallet but also includes the option for a key ring.

Often, though, we don’t even realize when we have lost an item until hours later. TrackR mitigates this issue via its net-work of users. If another TrackR walks by your misplaced

item, the app notifies you and pinpoints its location.A single device can track up to 10 items, with sev-

eral options for customizing sounds, appearance and more. Visit the Google Play and Android stores to download the app. Learn more or order TrackR devices at www.thetrakr.com.

What’s in a hashtag?BY DAVID BRAITHWAITE, DIP PFS, 2014 SOCIAL MEDIA COMMITTEE MEMBER

This year in Toronto, Ontario, Canada, at the MDRT Annual Meeting, we saw the largest number of tweets and Ins-tagram pictures ever at one of our meet-ings. Social Media has really exploded for MDRT. From having been a part of the MDRtweet team for the past few years, and proudly serving on the Social Media Committee, I am a firm fan of social media being used for MDRT and also within your business.

Using a hashtag lately has become — in some cases — overused, and not used correctly with people seemingly just writing long sentences such as #hategettingupinthemorning. The idea of a hashtag is to group tweets under one subject, in the case of MDRT, by using #MDRT2014. You can then search for that hashtag and view all the tweets using this hashtag together. By using a hashtag properly, we can see all the tweets made in relation to that subject, in one place, by people who we are connected to, along with those who ar-en’t part of our network. It’s a common bond.

To put some figures to it all, at the time of writing, members who used the hashtag #MDRT2014 in their tweets reached 8,758 people, and appeared on people’s timelines over 9,063 times.

Head over to Twitter, and type #MDRT2014 into the search box to relive everyone’s experiences and com-ments from the Annual Meeting this year and beyond.

Selfie helpA selfie is simple to take with a smartphone if you’re hoping to capture a photo of yourself and maybe one other person. If you want to get the whole family or group of friends, though, you’ll need additional equipment.

The company iLuv Creative Technol-ogy makes a smartphone case, Selfy, with a built-in wireless camera remote just for these occasions. The case is designed with flat sides, allowing the phone to be propped on a table or desk to capture the moment.

Selfy cases are available for $50 for iPhone and Samsung S5. Visit www.iluv .com/selfy to learn more or purchase a case in black or pink.

Focused timeWith multiple electronic gadgets and other interruptions, it can be difficult to maintain focus on any one task until completion. An old technique from the late 1980s builds a framework for marking tasks off your to-do list.

Francesco Cirillo created the Pomodoro Technique time management method nearly 30 years ago, named after the tomato-shaped kitchen timer he used. The idea is to commit 25 minutes to a task without allowing any other distractions. When the 25 minutes are up, you are allowed a five-minute break before taking

on the next task. Four 25-minute “pomo-dori” complete a set, which earns a

break of 15 to 30 minutes.The frequent breaks are

intended to keep your mind focused and fresh, while the timer forces you to manage distractions.

Today, free Web- and app-based timers are available at http://tomato-timer.com,

http://tomatoi.st/lmow and http://www.focusboosterapp.com.



PRACTICE

A motivated employee

wants to participate and

be heard.

One of the top requirements for a successful, financially healthy company is to retain its key employees. It is very costly to hire and

train employees, and then the employee might leave — or worse yet, stay, and not be fully committed.

We take care to hire the best talent, so the ideal outcome is to have the employee stay for many years. For employees to make a long-term commitment with the company, you must give them a compelling reason to stay.

Employers have numerous options to retain talent. Following are 10 ways to show apprecia-tion for your employees’ hard work and incen-tivize them to stay with your business.

1. Increase responsibility. Give employees responsibilities that encourage them

to grow and develop new skills. Provide the training and education that allows this to hap-pen. Pay for all or part of the education, based on their successful completion. If your firm is larger, try to hire from within your company. Promote employees who have taken on addi-tional responsibilities.

2. Show appreciation. Employees need to know they are respected and valued.

Often, stressed employers say things that are not respectful or encouraging to the employee. Remember to think quickly, but speak slowly. Listening to your employees is a good way to keep them from disengaging.

When employees do things right, acknowledge their actions to develop and maintain a positive workplace. Your clients will feel the positive envi-ronment and want to do business with you.

3. Offer monetary rewards. Tie part of your employees’ compensation to the

company’s overall performance. This helps to align the employee’s day-to-day work with the company’s financial goals and profit. If the com-pany grows, so does the employee — a win-win.

4. Provide a benefits package. Offer competitive benefits, including group

health insurance and retirement benefits. Ask other MDRT members in your country what their em-ployees find competitive or valuable. Communicate the value of those benefits to your employees.

5. Think individually. Get to know your employees’ individual interests to deter-

mine what is important to them. Select rewards such as tickets to sporting events, public recogni-

Knowing what your employees want can encourage their long-term commitment to your business.BY DIANE L. MCCURDY, CFP, EPC, AND THEODORE S. RUSINOFF, CFP

Retain and motivate


tion, lunches, handwritten thank-you notes, flowers, gift cards or support of their favorite charity.

Small, group perks are important, too. For example, you can provide pizza once a month, designate a jeans day and so on.

6. Offer time off and flexibility. Understand your employees’

individual needs and the value their talent brings to the firm. Flex time or extra days off might be difficult for a smaller firm to offer, but try to be as flexible as possible, and provide reasons when a specific request might not work. Can you give them their birth-days off? Can they work shorter days (compen-sation adjusted) if they have children they need to pick up from school?

7. Conduct stay interviews. It is just as im-portant to conduct stay interviews with

your longer-tenured employees as it is to conduct exit interviews. Why are your employees staying? What is important to them? Why did they come to work for your firm? What would make them leave? What would they like to see changed or improved? Use this information to strengthen your employee retention strategies.

8. Welcome employee input. Employers must create an environment where

employees want to contribute their ideas, talent and experience. A motivated employee wants to participate and be heard. It is important for the employer to listen to the employee and let them contribute and feel valued. Create an environment where employees feel comfortable to speak freely, even on matters outside their job description.

9. Define expectations. Having clearly defined job descriptions might seem

obvious, but this step is often overlooked. It is very frustrating for employees if they do not know what is expected of them. Employees need to know the company’s mission statement, values and goals. It is important to communicate if they change, as the employees are watching to see if the company they work for is sticking to their mandate and commitment.

10. Coaching staff. Your employees need one-on-one time with a direct su-

pervisor. If you cannot devote time to them, you need to have someone in place who can fill that role on a regular basis. Ultimately, your employ-ees still want to know they have access to the boss when needed.

In general, employees must feel rewarded, appreciated and recognized. Although monetary rewards are not the only motivating factor, they are a critical component. Work is about the money, and almost every employee and employer wants more. Treating your employees well will retain and attract the best and brightest to your firm. RTT

WHEN TO HIRE By Richard J. Presky, LUTCF, CLU

When is it time to hire a new employee? Consider the following scenari-os when adding to your staff:

Expand your business. As your business expands, your staff must expand with it to ensure the work is completed efficiently. Otherwise, you might have to pitch in where your time is not well-spent. A rule of thumb that has worked for me is to have one employee with every $250,000 my business earns in commissions. Each year, when you are mapping out your annual business plan, take expansion into consideration.

Fill the gaps. When someone leaves or retires, there is an obvious gap to fill with a new hire. Sometimes, gaps are present for less-obvious reasons. If you notice tasks or areas of responsibility that aren’t well-cov-ered, consider hiring another person to handle them.

Quality of service. To keep your clients happy and generate new clients, you must provide excellent service. If the quality of service within your business is deteriorating, consider whether it’s because your current employees have too much on their plate. Hiring additional help can cause everyone’s quality of work to improve.

Know your employees’ interests, and select rewards they will enjoy.


PRACTICE

The advisor’s PLAN

Why successful financial advisors don’t follow their own business

continuation advice.BY PAUL WHITE, PH.D.

Having worked alongside numerous financial advi-sors for nearly 20 years, it has become evident that their lives often illustrate the proverb, “The cob-

bler’s children have no shoes.” That is, while many financially successful financial advisors are quite proficient in assisting other business owners in developing a successful business succession plan, a large percentage of them are delinquent in developing their own business succession plan.

Why is this? As a psychologist who serves as a family coach to assist business leaders and their families in developing wealth transfer and business succession plans, the primary challenges are clearly nonfinancial in nature. The fiscal issues almost always can be addressed. What is left to be resolved are the myriad of relational, family dynamics and personal meaning issues.

Three challenges stand out that cause financial advisors to delay putting together even a minimal plan:

1. You are busyHere is the dilemma: Until you become disabled or die, you will almost certainly always be busy, and the planning needs to occur before this happens.

As Stephen Covey so brilliantly communicated in his quad-rant of activities, planning falls into the “important but not urgent” quadrant. The process (and the results) are import-ant — they need to occur. But, they are not urgent, so they are continually put off until some life event thrusts them into the realm of urgency.

2. It takes mental and emotional energy over timeFacts need to be gathered. Some parts are complicated. You need to sit down and become clear about your goals for the business, for your spouse, for your employees and for your fami-ly. This type of work doesn’t happen in 10-minute snippets or even a three-hour session of intense focus. So, for the planning to get done, it takes a commitment of time, energy and actions over time. That type of process is more difficult to complete.

3. It involves other peopleI’m not talking about your broker-dealer or insurance carrier, although their involvement is important. What you decide about the future of your business will affect your employ-ees — especially any partners or managers you have — along with your spouse and family, whether or not they are actively involved in your professional practice. As a result, it is critical to involve them and get their input.

Following are the relationally based issues that often arise during discussions about the future of the business:


The worst thing you can do

regarding your business suc-

cession plan is to think about it but not take

any action.

have no clue what life after work looks like. So we don’t want to think about not working. The problem is — this really puts your business, your family and your employees at risk should some-thing unfortunate happen to you.

One solution is to create a life transfer plan. A lot of people live a long time — longer than they are able to work. So, think through a business succession plan assuming you will live for an-other 20 to 30 years, but may not be able to carry all the responsibilities you do now.

Action stepsThe worst thing you can do regarding your business succession plan is to think about it but not take any action. Why? Because by thinking about it, you can deceive yourself into believing you’ve actually done something and have begun to address the issues. Following are potential action steps I encourage you to take:

Talk with your spouse, key employees, and involved family members. Start by telling them you understand you need to do some business succession planning.

Identify an expert to coach you through the process, which includes:

n Thinking through the relevant issues that need to be considered

n Helping you design a process that includes all relevant individuals

n Keeping you on task over timen Assisting you, your staff and your advisors

with getting the needed tasks completedBegin to talk to the others involved. Start

by finding out what they want, and hear their perspectives. They may not be honest if they hear what you want first and their thoughts differ from yours.

Use your coach to help you work the plan, step by step. Get some aspect completed, for example, what happens if you die in the near future. Don’t get bogged down by the apparent complexities. Take it a piece at a time.

You have completed several large, compli-cated projects over your career. Don’t let your future, your family, and your employees suffer as a result of not taking care of your future busi-ness planning. RTT

Your future financial security. How will you be able to monetize the value of the company’s reputation and client base? Who you are now and what decisions you make will significantly impact you in the future.

What does your spouse or significant other think? How does the decision impact them? What do they desire for your future life togeth-er? What do they wish for you?

How does the current management struc-ture intertwine with your plan? Do you have someone who is ready to manage the business without your day-to-day involvement? If not, have you sought counsel on potential solutions?

Fairness among stakeholders. When family members (or long-term key employees) are in-volved in the business, how do you make things fair? How do you transfer equivalent wealth to non-involved family members (especially if you continue to live to a ripe, old age)? How do you reward the “sweat equity” of those family mem-bers who have worked long and hard for several years, often for minimal financial gain? How do you treat long-term employees fairly?

These key questions have to be answered before you can move forward in addressing the other related business and financial issues. But there are two more challenges to overcome.

Uncertainties cause fearBusiness succession planning is difficult be-cause there are uncertainties. You don’t know how long your health will be good, when your adult son or daughter will be able to manage the business, or any of the other numerous is-sues. Most astute business leaders learn how to assess and manage the risk associated with the unknown. But when it is your business, your financial future, and your family and employ-ees involved, the decisions take on far more personal relevance. As a result, the decisions often are more difficult to make — thus, they get delayed.

Finally, business succession planning is sometimes avoided because you have no idea what you would do if you didn’t work. For many of us, our work becomes our identity. We love it. We feel alive when we are successful. But we


PRACTICE

A producer shares a timeless message of not losing yourself in work.BY SCOTT ROGERS

The other side

Many times, I have asked myself the question: “What is the chief essential skill to success in this business?”

Is it technical ability? Is it hard work? Is it planning or time control? Yes, it is all of those, but they alone are not the answers, because we must also have something inside us that makes people like to do business with us. That some-thing is the warm glow of friendship and real interest that radiates from the heart. Yes, this is an important element to success.

A friend of mine recently said, “You can’t get life insurance success out of a textbook.” And taking this thought one step further, you and I

know there is no business where success is so dependent on “state of mind” as is our business. Our state of mind is what goes on deep down inside. It is the controlling factor in how far we go in this business of ours.

One night last July, I heard a down-to-earth talk by an outstanding professor from the Uni-versity of California. Much to the surprise of his hard-boiled audience, his subject was: “Let’s go over to the other side.” That subject could open up many lines of thought.

For example, many salesmen possess a dual personality. You have seen the type — a Dr. Jekyl and Mr. Hyde. All day long, he has a big smile and a sales personality turned on full steam, but when he comes home at night, off goes the personality faucet and in walks Mr. Grouch to a wife who has had a rough job chasing young-sters all day, cleaning the house, cooking meals, washing and looking forward to his homecom-ing, thinking it may be different. Her reward is

At the 1947 MDRT Annual Meeting in Swampscott, Massachusetts, Fred A. McMaster, CLU, spoke to members about the importance of balancing work and family life. More than just maintaining a proper balance, this 27-year MDRT member from Newport Beach, California, made the case that members need to give the same attention to their loved ones that they give to their clients.


Many salesmen

possess a dual

personality.

the same old grouch that left her in the morning.With birthdays, flowers, getting busy, consid-

eration of our wives — yes — let’s go over to the other side.

Then there are the kids. We tell clients all about their children. We use the stories and word pictures of Carroll Day and other great men of this business as we talk about little red wagons, little shoes, about Santa Claus put-ting checks on future Christmas trees, about his choosing a “W” for Wellesley or a “W” for Woolworth for his daughter. Yes, we tell other men all about that sort of thing, but it likewise applies to us.

Have you ever tip-toed into your nursery at night? Have you looked at that precious little bundle of life lying there? Have you ever stood there, looking down at that little fellow and thrilled with pride as you have kind of thrown out your chest and said to yourself: “Gee, he sure looks like me.” Yes, in our own lives, I guess we sort of take the credit for everything.

Let me tell you a true story about this taking credit. My eyes are blue; my wife is a charming brunette with beautiful dark brown eyes, and our two lovely daughters also have big brown eyes. Do you know what I once said to my wife?

“Honey, I know where our girls get their big brown eyes.” She looked at me expectantly, naturally thinking me to be the gallant husband,

but dumb me, I said, “Our girls get their brown eyes from my Aunt Nell.” She’s my father’s sister and 84 years old. See what I mean? Let’s go over to the other side!

Yes, we tell other men about their kids who worship the ground those dads walk on. Don’t you suppose our kids feel the same way about us? Have you ever had the feeling as you have gone off at night to some meeting — and how dry and boring some of these meetings are, or as you have gone to make a call, or for a Saturday or Sunday playing golf — have you ever felt as I have felt?

“Gosh, maybe I should have stayed home with these kids of mine,” I’ll think. But we shrug our shoulders and excuse ourselves by saying, “This is for business.”

I believe your wife and mine, yours kids and mine — our families — I believe we are their hero, just as Mr. Prospect is the hero we paint him to be. Let’s go over to the other side with our families. You fellows here are undoubtedly on that side now. I know a wife and children who have placed their dad on a pedestal, and this man tells me his biggest job is not to treat his family like the big shot they believe him to be; his big job is just to be a humble regular sort of husband and dad. So again, I say, let’s go over to the other side and be a regular sort of a fellow with our families. RTT


CELEBRATE NEW LIFE

PERSONAL TOUCH

Recently, as part of our appointment confirmation process, we began asking our clients to bring in a family photo for our records.

The idea came from our desire to humanize our client files. I get to see the look in the client’s eyes, and I get to hear their appreciation. But, our office team doesn’t benefit from those experiences. They might get the occasional note, comment or email, but the advisor basks in the warmth. With our new client relationship management software, however, a photo displays when we open the client’s file. This way, folks in the office can put a face to a name and deepen their relationships with clients.

It has worked very well for us. We even started designing the office visit around collages of these photos, which I refer to as our Wall of Fame. We’ve included articles written about our clients, various media clips and photos of their families.

Our clients are thrilled we are not all about numbers and money — that we remember who we’re really working for: their families.— Andrew C. Lord, CLU, ChFC, Portsmouth, New Hampshire, 26-year MDRT member

For the last few years, my firm has been using online webinar software to connect with our clients more frequently for investment reviews. Recently, to begin our Web meetings, we started displaying photos of our advisors and staff during exciting life events (weddings, births, vaca-tions, etc.). Unexpectedly,

our clients began sending us pictures to share their own families and experi-ences. This small adjust-ment to our presentation method has further en-hanced our firm’s image and motto of “Planning Made Personal.”— William T. Spencer III, CFP, Sudbury, Massa-chusetts, 7-year MDRT member

FIRST IMPRESSION

“Interacting with prospects in the presence of their

family brings better and faster results.”— Brij Bhooshan Chandhoke, Kalyan, India, 12-year MDRT

member

First impressions are often lasting impressions. When a new client comes to the office, our staff greets them. Once they are welcomed and seated, I approach and make a very positive, pleasant com-ment to the staff, out of sight but within hearing distance. For example, I might say, “Thank you for taking care of Bob and Sue. Everything is all

set, and they are so pleased.”First impressions can be

made by listening, as well as seeing. The warm, gentle comment has just reduced their stress and formed a very positive first impression. We are off to a good start.— Nan M. Zimdars, CFP, CLU, Madison, Wisconsin, 32-year MDRT member

The addition of a new family member to a health insurance pol-icy brings opportunities for new life insurance sales. In my firm, we do both life and health insurance. As you may be familiar, when a new family member is born, their inclusion in the health policy isn’t always automatic. In some cases, it requires some paperwork to be completed. At least, an identification card must be issued and delivered.

I always deliver this identification card personally and take the opportunity to talk about life insurance. In my experience, the timing is just right to bring this up. Because I already have most of their information on file (because of the health insurance policy), I take with me sample quotes for life insurance.

If they already have life insurance, the conversation starts by suggesting a review of their current beneficiaries. This can lead to a review of the current face amount and subsequent increase.

Remember, service always leads to new sales. — Ana Sofia Rodriguez, Panama City, Panama, 9-year MDRT member

FAMILY PHOTOS


PEOPLEour

2015 MDRT President 28 | Success in senior market 32 | Be a sponge for ideas 34 Financial disaster firsthand 36 | Members in Taiwan 38 | Quick business tips 40

SETTING THE COURSE

“Decisions made and actions taken during the next two to three years will have a significant impact for the

next several decades.” — Caroline A. Banks, APFS,

MDRT President

MEMBERSHIP STATS

Taiwan is home to 2,114 MDRT

members.

HAVE A PLAN

“If you don’t know what you want, you’re not

going to get it.” — Jennifer P. Mann, MBA, CFP,

speaking about the benefits of study

groups in the ConneXion Zone at the

2014 Annual Meeting

WHOLE PERSON BEGINNING

Philosopher Dr. Mortimer J.

Adler first introduced MDRT members to the Whole Person

concept at the 1961 Annual Meeting in

Bal Harbour, Florida.

| FEATURE NAME |

At the leading

edgeMDRT President Banks stays ahead of the curve to meet challenges and accept opportunities head-on.

BY KATHRYN FURTAW KEUNEKE, CAE

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| FEATURE NAME |

Caroline A. Banks, APFS, considers herself lucky to have

found her calling in life. The 25-year MDRT member from London, England, joined the financial services profession at the urging of her brother in 1986 after her previous em-ployer, Canada Dry, relocated.

The journey was difficult, as Banks navigated through stock market crashes, and reg-ulatory and legislative change. But, through it all, she has managed to maintain lasting success — and continues to achieve more.

Banks has become a leader in U.K. financial services, and she is ready to guide MDRT as it embraces new ways of pro-viding its members value to retain relevance in a changing world.

As a newcomer to the finan-cial services profession, Banks spent a year teaching herself

the basics of the business by working through case studies — nontraditional training, but the way she knew she would learn best. Following the stock market crash in 1987, Banks was working hard, but despite her best efforts, her produc-tion was not keeping pace. Needing a new approach, she ventured out of the office to soak up knowledge from others. She finally gained momentum and developed a specialty in pensions in the early 1990s, providing the basis for her Independent Financial Adviser of the Year award in 1994. The award gave her the confidence she needed to go out on her own and establish Caroline Banks and Associates, a boutique firm with a focus on corporate pension work.

In a nation where regula-tory change has encouraged many advisors to leave the The Caroline Banks and Associates team

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business during the last couple of years, Banks is a leader in the profession. Rather than dwell on these new challenges, she has found the silver lining of new opportunities. Today, her firm — with a focus on holistic financial planning — is one of about 400 in the U.K. with corporate Chartered Financial Planners status. She also holds some of the highest-ranking U.K. financial planning designations — as an individual Chartered Finan-cial Planner, Associate of the Personal Finance Society, and affiliate of the worldwide Society of Trust and Estate Practitioners — far exceeding the minimum credentials ad-visors must retain in the new legislative environment. The standards of advice in the U.K. have been raised, and Banks aims to stay far above the requirements, ensuring her firm is trusted and her clients receive the best advice.

This dedication to achiev-ing high levels within the profession opened a door for Banks just when she needed it. Following the departure of a key staff member from her firm at the end of 2012, Banks increased her level of support staff, but continued to seek a longer-term solution that would allow her firm to remain independent and provide the same level of service, while also complying with the new regulatory requirements that took effect in January 2013. She recently decided to become a member of an exclusive net-work that only accepts mem-

bers at chartered status — an important distinction for Banks.

“For a small company to be independent is becoming even more difficult because of the hours of due diligence to meet the regulators’ requirements of independence,” Banks ex-plained. “But, it’s a huge part of who I am to want to remain completely independent.”

The relationship with the firm, which was finalized in June, ultimately allows Banks

and her staff to spend more time on client-facing work, and less time on backroom operations. “It takes out layers of complexity,” Banks said. “I can drop some of the admin-istration on the business so I can go back to what I’m best at: meeting with clients.”

Banks has found a safe place in MDRT when it comes to the change facing this profession. It both provides the inspira-tion and motivation to remind advisors why they do what they do, and offers access to other high-achieving professionals who have encountered similar situations and prevailed.

With a time-consuming schedule of running a successful business and serving as a member of the Executive Committee, Banks has learned to sched-ule time for health and relaxation. “There’s a lot of clutter going on,” she said.

Banks is committed to exercising most days of the week, including regular appointments for Pilates, yoga and weight training. Time with her loved ones is added to the weekly schedule, as well. Most Sundays, Banks cooks a family dinner, when she and her husband, David Rogers, are joined by his adult daughter, Rebecca, and their granddaughter, Roxie, 9, and any other family members who wish to come.

Banks’ home is her sanctuary — a 400-year-old thatched-roof cottage she bought in 1982. When the hour-long train ride separating her home from her office in the West End of London is not enough to disconnect from the stresses of everyday life, Banks and Rogers escape to Menorca, one of the Balearic Islands in the Mediterranean Sea.

TIME TO UNWIND

If you are ready to

listen, MDRT has something

to offer.

“

”

Banks with stepdaughter, Rebecca, and granddaughter, Roxie


MDRT’s focus on devel-oping as a person — and as a businessperson — is some-thing Banks said she can’t get anywhere else. She remem-bers being blown away by her first MDRT Annual Meeting in 1990 in San Francisco, California. If you are ready to listen, she said, MDRT has something to offer, wheth-er it’s a tip to improve your personal life or a technique to use in your business.

MDRT’s strategic initiativesAs Banks takes office Sep-tember 1 as MDRT’s 89th President, her role is to lead the organization’s efforts to deliver value to MDRT’s glob-al membership — a charge Banks said is being negoti-ated by an ongoing strategic planning effort. The planning process has been long and intense, involving member input from around the globe via surveys, in-person and virtual brainstorming ses-sions, as well as discussions with industry partners. “The process to get where we have has been quite extraordinary,” Banks said.

The strategic planning pro-cess provides the organization clear direction and clear focus through a set of five principles:

1. Organizational indepen-

dence — steadfast adher-ence to MDRT’s best interests

2. Highest standard of

excellence — offering the best to the most accomplished

3. Value and self-worth to

the member — providing personal and business devel-opment opportunities

4. Member connectivity — sharing common experi-

ences and unique insights

5. Ethical behavior — behaving professionally

with the highest standards

“Every decision made is tested against MDRT’s guiding principles,” Banks explained. “It’s a yes or no: Does it meet that standard?

“Decisions made and actions taken during the next two to three years will have a significant impact for the next several decades. The strategic planning we are undertaking aims to ensure the decisions are the correct ones.”

One of the big questions behind the strategic planning effort is how to enhance value to members in ways that are

relevant to them. “It is our re-sponsibility to ensure MDRT remains relevant in each of our lives, whoever we are and wherever we are from,” she said during her Annual Meeting address from Main Platform.

The first step is a new plat-form for delivering relevant content for members that is accessible any time, any day on the redesigned MDRT web-site, expected to launch before the close of 2014.

“We will continue to pro-mote success and achievement through connecting people and ideas,” Banks said in June from Main Platform. “We will provide ongoing innovative experiences. We will help further develop meaningful relationships. We will provide more opportunities to develop our global leaders, and all the time ensure we enhance and never compromise our brand, known worldwide for excel-lence: MDRT.” RTT

Banks and her husband, David Rogers


PEOPLE

Christensen found success in the senior market through intense focus on their needs.BY ELIZABETH FUHRMAN

W. Robin Christensen, FICF, LUTCF, believes he is best-suited to work with people 60 and older,

and the reason is not without intention.At his first MDRT Annual Meeting in 2003,

the 12-year MDRT member from Pensacola, Florida, sat down with a few members who were eager to help him improve business. One emphasized the importance of specializing in a marketplace. Christensen realized he already had a natural focus on seniors, but he took his fellow member’s advice to get properly educated on the market — before his competition did.

Christensen became certified in areas of retirement income, long-term care and work-ing with seniors. He took a course on Social Security planning and also on the veteran’s Aid and Attendance benefit. He regularly attends senior-related conferences around the country. Christensen also listens to the CDs from MDRT

Annual Meetings — where he gets his best ideas to deal with the senior market.

“If you are going to be in the senior market-place, to do a good job for them, you need to be educated,” Christensen said. “You need to be ed-ucated in Social Security, the veteran’s benefit, in Medicaid planning and income planning.”

Today, 95 percent of Christensen’s clients are 60 and older. He primarily deals in fixed annu-ities and life insurance, and he has found his niche in pre- and post-retirement planning.

Retirement planning gives Christensen plenty to talk about with his clients, from legal issues including durable power of attorney and health care surrogates, along with tax issues, individual retirement arrangements and required minimum distributions. Christensen brings in a board-cer-tified elder law attorney and a certified public accountant if necessary for his clients.

His clients’ top concern is to be financial-ly independent by having a secure income to match their lifestyle income. Many of them are also concerned about protecting and preserving assets for their family.

His extensive knowledge about their specific needs maintains their loyalty.

MDRT PARTICIPATION LEADS TO SUCCESS

Interacting with other members at an Annual Meeting helped Christensen learn the power of specializing, ultimately leading to his success in the senior market. Listening to Annual Meeting tapes on topics of interest to his market helps him continue to grow his business.

Today, he encourages other MDRT members to go to Annual Meetings and participate.

“I was told that was something I should do from somebody I like and respect, and that’s what I did,” he said. “That has paid off big dividends. If you are going to stay in the business, you want to volunteer. You want to serve MDRT any way they ask you to because you will meet friends.”

TARGETED

education


ant information to share and that he will be in contact. If the referral is someone the client says would be a good prospect but doesn’t know well, Christensen mails a letter to let the referral know he does business with the client and to let him know if he can be of service.

Christensen also markets himself by sending direct mail letters informing potential clients of a benefit they might not be aware of and lets them know someone will follow up by phone. He employs a person to make the calls to sched-ule phone appointments. In a 15- to 20-minute phone call, Christensen can qualify the poten-tial client, find out about assets and discover whether they are nice. Christensen also employs someone to process of all the applications.

In addition, the elder law attorney and cer-tified public account Christensen works with refer him because he refers them.

“I try to be referable,” he said. “I let people know that I’ve put their practice up there and given them access to my clients. I know they are really on the same page with me and put their people first.”

Moving forward, Christensen plans to contin-ue his focus on the senior market, but he intends to also include those who are 55 and older.

“Once you learn about the senior market and understand it, retirees are very respectful of your time,” he said. “They are very loyal.”

Christensen’s clients continue to come to him for advice because they trust him, and he puts their best interests first.

“If you are educating, organizing, serving and helping people, you are going to get their business,” he said. “Doing beneficiary audits, putting their affairs in order and talking about the wills, about the durable power of attorney, Medicaid and the veteran’s benefit, along with doing proactive planning, is what makes people want to do business with you.” RTT

Elizabeth Fuhrman is a freelance writer and editor.

“The education is what makes clients come back because they know that I know what their circumstances are and what they will be in the future,” he said. “If you live long enough, you are going to need some help. They know they may not need the benefits I provide today, but they want to do business with me because of the experience, wisdom and knowledge I have from working with other people. This is a business where experience matters.”

It took Christensen a couple of years to break into the business because his practice was all over the board. He was writing people in their 20s and in their 60s. Luckily, the older genera-tion is good about giving referrals, he said, so his business grew.

Christensen still gets a fair amount of referrals because he makes it a point to tell his clients he is trying to grow his practice. To alleviate their concerns, he tells his clients exactly how he will contact their friends.

His favorite way to contact the referral is to make a personal introduction by taking the client and referral out to lunch. If the referral is too busy for lunch, Christensen tells the client to let the referral know he has some import-

CONTACT:

Robin Christensen [email protected] MORE about the veteran’s

Aid and Attendance benefit at www.roundthetable.org.


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T imothy Daniel Clairmont, CFP, MSFS, likes trying new ideas. In fact, he joined three coaching programs last

year, in addition to trying new ideas he learns at MDRT and Top of the Table meetings.

“I have a high-implementation quotient, you would say,” the four-year MDRT member from Lake Oswego, Oregon, explained. “Everything I hear, I pretty much try, and we decide to either keep it or discard. It’s harder for me to hear new ideas now because we have tried and implemented so many things.”

From marketing strategies, systems manual work and employee benefits, Clairmont has implemented dozens of ideas over the years, and they all positively impacted his business, Clear Financial Partners. His objective cur-rently is to streamline his business as much as possible so it can be replicated.

“We are going to be bringing on other advisors who are in this line of work and allowing them to utilize all of our systems, our systems manual, our process and even our brand if they would like to be a branch

of my firm, and still maintain their autonomy,” Clairmont explained. “They can benefit from all the work we’ve done. The more streamlined and systemized our process is, the easier it is to transfer that structure and hopefully enhance the success of other financial advisors.”

Right out of college in 1997, Clairmont was hired as an independent contractor. He had the intention of gaining experience in this role and then returning to school a year later to become a tax attorney. After a year working as a financial planner, Clairmont realized he was born for the profession and has since been with the same company for the past 17 years.

Clear Financial Partners provides comprehen-sive financial planning, primarily for the baby boomer demographic. Most of its clients typi-cally are married with a family and upper-mid-dle-class with a net worth between $500,000 and $3 million.

Like most baby boomers, Clear Financial Partners’ clients are trying to figure out how they can get their maximum income stream out without running out of money, hopefully leaving

Implement for impactMultiple sources of ideas help Clairmont build systems to sustain and grow his practice.BY ELIZABETH FUHRMAN


PEOPLE

which rewards anyone who provides a referral or brings someone to one of the company’s work-shops. Any client who provides a referral during the past year gets to attend a major event, which this year included hanging out in the party suite at the Portland Trailblazers game with Portland alumni players, cheerleaders and the team mascot.

“I decided that as far as marketing is con-cerned, the best resource I have is my clients, so every marketing dollar that I can think of I try to turn back into how can I provide an amazing ex-perience for my clients so they can’t stop talking about how awesome we are,” Clairmont said.

With that in mind, about five years ago, Clairmont started client appreciation events for its four levels of clients: Pearls (assets less than $250,000), Opals ($250,000 in assets), Ruby ($500,000 in assets) and Diamond ($1 million or more in assets). Events range from fami-ly-oriented events to equestrian wine tours and dinner cruises.

Another idea that Clairmont learned from a coaching program is hosting workshops. Last year, Clear Financial Partners hosted four workshops, and this year has plans for six to which clients are encouraged to bring interested friends. The workshops include a plated dinner at a local restaurant. There, Clairmont will speak for about 45 minutes, providing tax and economic updates, along with other financial topics such as long-term care.

“The workshops really tie in with the client advocate programs because if you don’t have an easy way for your clients to refer you, then it’s not easy for them to do it,” Clairmont said. “Not ev-eryone wants to come in for an appointment.” RTT

Elizabeth Fuhrman is a freelance writer and editor.

some behind for their kids. Clairmont helps clients deal with their aging parents’ long-term-care issues.

“Trying to assist them with that process is one of the next value-adds we are trying to work on right now,” Clairmont said.

Clairmont’s primary role is to conduct face-to-face meetings with clients all day. Clear Financial Partners’ CEO, Chris Oswalt, manages all of the client portfolios in addition to man-aging the staff. The team includes a COO, Dan Willey, who manages team operations and han-dles processing business, prepping paperwork and getting paperwork face to face with clients, in addition to preparing Clairmont for appoint-ments. The COO works with two administra-tive executives and is in the process of hiring another operations specialist. The team also has a marketing executive, who handles marketing, regular mailings and website updates. Six years ago, Clear Financial Partners added another ad-visor, to whom Clairmont started transitioning his surplus of clients. A couple of years ago, the company added a third advisor, who is also an attorney and can take care of much of the legal work that many clients need. The two advisors share an assistant.

Clairmont loves seeing the growth of his team and is ready to bring on more advisors. “Orig-inally I wanted to bring on new advisors from right out of college, the way that I came into this business, but it takes too long to train them,” he said. “It takes three to five years to get them up and running, and I can’t impact as many people that way. Instead, I’d rather bring on advisors who have already been doing this and struggling for the last two to five years and/or just have plateaued and want to get to that next level. I’ve already been through so many of those levels, and I want to build the ability for them to get to the same point where I am.”

Clairmont’s business grew exclusively through referrals since 1997 until early 2013, when he joined a coaching program and began a more robust marketing approach. Clear Financial Partners now sends out monthly mailers to its top clients providing updated information, as well as promoting its client advocate program,

CONTACT:

Tim Clairmont [email protected].

“I provide an amazing experience for my clients so they can’t stop talking about

how awesome we are.”Implement for impact


PEOPLE

Setting a financial pathShub looks to protect his clients from the type of financial losses he’s seen firsthand.BY SCOTT ROGERS

D aniel B. Shub emigrated to the U.S. in April 1994 from Ukraine. At the time, Ukraine had only been an independent

country for three years, rather than a republic of the now-defunct Soviet Union. A 21-year-old then, Shub remembers this moment well, along with the cost that came with it.

“I have personally experienced a little-known economic depression when Ukraine became in-dependent, as the country changed its currency several times,” he said. “Most people lost their life savings. I remember when my grandmother told me after one of the shifts in the currency that everything she had saved for the past 30 years was now just enough to buy a few loaves of bread.”

This moment led Shub, a two-year MDRT member from Troy, Michigan, to join the finan-cial services profession to ensure others would never go through a similar situation if he could help it.

When Shub first arrived in the U.S., it was with a bachelor’s in electrical engineering he had obtained while still in Ukraine. Yet, he de-cided to follow his instincts and enter this field, officially beginning his career in 1997 as an agent for Farmers Insurance Group. “My success in my early years I attribute to my district manager and mentor, Tom Tucker,” he said. “He was the reason I started in this business, and he was the one person who taught me the basics and the impact life insurance can have on families when they need it the most.”

From 1997 to 2001, Shub rented office space in his district office selling life and property-casu-alty insurance. Thanks to the persistency from Tucker, he said, Shub became one of his dis-


their financial house in order, but primarily to protect their assets, the money they spent their entire life accumulating,” he said. “Almost every day I see people come to my office who work with a financial advisor and they have a portfo-lio of stocks, bonds and mutual funds, but their income just isn’t reliable. Over 90 percent have never had a written financial and income plan, where their goals are aligned with where their dollars are invested.”

Shub laments the current state of most big financial firms. Most, he said, are simply looking for the stock of the day. “We actually will sit down with our clients to discuss what their goals are. We’ll put together a plan that provides them choices. What we do is teach them about the options, educate them on their financial path,” he said.

Shub believes the key to a client having a suc-cessful retirement is a good income plan where they can always know where their money is coming from. His clients should never risk the money they need to live on and should have a reliable, consistent source of income, he said.

Shub joined MDRT out of a desire to continue learning. “I am always educating myself,” he said. “What would be the better place to learn if not from your peers in the industry?”

When he first got involved in the industry, he viewed MDRT as a symbol of success. Qualify-ing for membership was a signal to Shub that he had climbed to a new level of success.

Long term, Shub would like to continue to grow his company, Shub and Company LLC, by building a bigger referral network. He calcu-lates he has at least 25 more years of work until retirement, but is skeptical at this point that he’ll really go through with it. “I love what I do so much that I don’t know if I will ever want to retire,” he said.

With his wife, Natalya, and son, 5-year-old Platon, Shub lives a happy life geared to-ward the future. When it comes to succession planning, Shub toys around with keeping the business in the family. “Maybe at some point, my son will join me, and when the times comes, he may be a successor to my practice. We will see,” he said. RTT

trict’s top agents. “Every morning he was in my door with the same question: ‘How many new life applications do you have?’” Shub said.

In 2001, he decided to go independent, realiz-ing that though he was very successful, the solu-tions and products he was providing his clients were limited. “It was just not the best way to help the families I was working with,” Shub said, realizing he needed to add a financial planning segment to his business. “I have witnessed many clients lose their life savings, specifically in the 2001 and 2002 stock market downturn. I came to realize that I can do more for them. I can help my clients achieve security and independence in retirement. I can affect their lives in a positive and meaningful way.”

To focus more on financial planning, Shub began to learn more about how many of these financial products he was unfamiliar with worked. He also received his series 65 license and became an investment advisor representa-tive.

As time went on, Shub phased out his prior work in property-casualty insurance to focus on financial planning. Today he specializes in re-tirement planning, ensuring that what happened to his grandmother in Ukraine will not happen to others.

“My goal is to not only help my clients put

Shub with his wife, Natalya, and son, Platon.

CONTACT:

Daniel [email protected]


PEOPLE

“I consider a career in insur-

ance a calling that enables

you to love people and

help people.” — Pei Hua Tsai

To be valuableTwo members in Taiwan encourage MDRT members to work together.BY SCOTT ROGERS

One of the most popular segments at the MDRT Annual Meeting is the opening Flag Ceremony, where members from each

MDRT country step forward, proudly displaying the flag of their nation to an audience of thousands. For a moment, they are all connected through their shared association in MDRT.

Often forgotten, though, is just how differ-ent all these nations are. Beyond language and geographical boundaries are cultural differences that have all combined to make MDRT such a unique organization. Each nation holds different values and views toward the financial services profession. It is important to understand these differences and not work toward one unified view, but instead acknowledge the differences between member countries. Clients from around the world demand different types of attention, and members can learn from one another.

Taiwan is home to 2,114 members. Two of them, Pei Hua Tsai and Joseph Fang, shared what makes their region different and how they believe MDRT can help producers in their na-tion work together.

Tsai is a 13-year MDRT member from Taipei, Taiwan, and is the Regional Chair of the Mem-ber Communication Committee (MCC), Region E. Fang is a 13-year MDRT member and MCC Zone Chair for Taiwan, also from Taipei. Both have a shared excitement for this profession and the opportunities before them.

“It is a career teeming with learning opportu-nities and exciting challenges,” she said. “I revel in such opportunities and challenges, and the chance to constantly improve myself and serve

my clients more professionally. I consider a career in insurance a calling that enables you to love people and help people.”

Taiwan has followed the lead of other mem-ber nations by becoming increasingly involved in regulating the industry, Tsai said. “The government clearly understands that the impact of the life insurance industry to the country’s economic level is long and far-reaching, and therefore has become increasingly active in set-ting rules governing the life insurance industry,” she said. “On one hand, this prevents people from investing too many funds and increasing risks. On the other, it encourages a better quali-ty of sales agents.”

Fang notes that in the past 20 years, the rate of insurance coverage in Taiwan has grown dramatically. Despite this growth, Fang still feels the insurance for citizens of Taiwan is woefully

Taiwan

Skyline of Taipei, Taiwan, featuring the Taipei 101 Tower. The tower is located in downtown Taipei and stands 101 floors high. Visitors can ride up 91 floors to see the sights of Taipei City from a height of 509 meters. It held the title of tallest building in the world from 2004 to 2010.


“You need to be emotionally contagious to make a sale.” — Joseph Fang

inadequate. “Most people are under-insured,” he said. “If an unexpected event occurs, they do not have enough coverage to take care of the family. This is because more people are buying sav-ings-type insurance, rather than security-type. The government has been promoting a national pension in recent years, so the need for retire-ment planning has increased.”

He says there is a need for agents who act pro-fessionally within the country, and laments the fact that other advisors in the country seem to lack this knowledge and do not work together as much as they should to enhance the prestige of the profes-sion. “The most important thing in our business is trust. I’ve been in this profession for over 20 years, and my clients trust me a lot. Therefore, for me, there are a lot of opportunities,” Fang said.

Despite these opportunities in the market-place, Tsai said, keeping herself motivated can

be a struggle. “Sometimes, I will lose motivation and passion,” she said. “As soon as I’m lost, I will ask myself this question: ‘If I lose my passion and return to where I stood, then what would I want?’ After thinking about that, my answer is: ‘I want to be valuable.’ In order to become a valuable person, my passion for work comes back,” she said.

Fang agrees with this sentiment, noting without passion, you’ll be unable to make a sale. “You need to be emotionally contagious to make a sale,” he said. “No matter how the environment changes, you are the only thing that matters. As long as you do your job well, then you can stand strong in this business.”

To address the issues in their country, Tsai pointed out that the ability to share through MDRT is immense. “Soon, we’ll realize that oth-er MDRT members are not our competitors, but our peers who encourage one another,” she said.

Being a part of MDRT has changed the way she works and lives, Tsai said, and she hopes this will continue. A message she heard at her first Annual Meeting in 2004 from 2001 MDRT President Tony Gordon, a 37-year member from Bristol, England, still resonates with her.

“I attended Tony Gordon’s speech about keep-ing balance in life,” she said. “It was inspiring in terms of the MDRT ideal of the Whole Person concept. I keep reminding myself to find balance in life. This not only gives me satisfaction, but also enhances my production.”

Fang likewise also initially connected with Whole Person. “The first Annual Meeting I attended was in 2001. I learned a lot from that meeting. I learned about Whole Person and also picked up many sales ideas. I was very impressed to meet individuals who had already been in this profession for 50 years. I’ve attend-ed all but one meeting since,” he said.

Both of them recognize that giving back through organizations like MDRT helps add value throughout their lives.

“Our income covers our everyday lives, but our life achievements are covered through volunteer work and giving,” Fang said. “I’ve met so many friends here, and I’ve been constantly inspired. MDRT has helped me a lot when it comes to both work and family.” RTT

CONTACTS:

Pei Hua Tsaipeggy590504@ yahoo.com.tw

Joseph Fangjosephfang520@ gmail.com


John L. Gilfoil, CLU, CFP

“Run your business like

a business. Own what you sell.”

Location: Springfield, Massachusetts

Membership stats: 21-year MDRT member

MDRT involvement: Pre- and Post-Retirement Committee Chair

PEOPLE

Q&AHow do you describe your practice? I am a sole practitioner. I help clients manage their insurance and analyze their band of invest-ment cash flow risk. What is your target market? I target small-business owners and professionals. What is your best marketing tip? Do good work with good people. That will mar-ket itself. What do you find most exciting about our profession? That the choice to work hard is always rewarded. What can the MDRT membership expect from the Pre- and Post-Retirement Committee this year?They can expect some hands-on tools to help our membership be more profitable. How do you stay motivated month to month? I eat my broccoli first. I do the things I like the least before I do the things I want to do. I know that I must have some level of pain to get where I want to go. I like seeing that I am reaching my goals.

What tips would you give to new advisors? Always do the right thing for the client. Focus on what they want. Commit to high levels of activity. Get a CLU and CFP. Schedule time for family and fitness. Run your business like a business. Own what you sell. What is the main benefit of attending an MDRT meeting?The opportunity to take a step back and deter-mine what is really important: the Whole Person. How do you benefit from volunteering with MDRT? It makes me feel like a leader. It allows me to connect one-on-one with MDRT leadership. What are your interests outside of business? I golf 100 rounds per year, ski 60 days per year and hang out with my family.

Where do you see yourself in 10 years?Semi-retired, working with the top 10 percent of my clients, along with a younger advisor. RTT

Contact John Gilfoil at [email protected].


MDRT2015 leadership 43 | MCC Chairs 46 | MDRT Foundation 47 | Motivation via video 50

Remembering a past President 52 | Thanks to you 53 | MDRT staff changes 54

inside

GLOBAL REPRESENTATION

In 1973, MDRT established a global network of MDRT

members to improve commu-nication among its members

in 31 nations. Today, this network is called the Member Communication Committee

and represents 71 countries.

SPREAD THE WORD

Round the Table was first translated in the 1990s into Japanese

and Hebrew. Today, you can

read it in 9 languages.

FOUNDATION GRANTS GROW

In 2014, the number of grant applications endorsed by MDRT members grew by

23%. In response, the MDRT Foundation Board increased

the grants budget for the 2015 fiscal year.

LIVING LEGACY

MDRT currently has 32 living Past Presidents.

Jack Peckinpaugh, CLU, ChFC, of Muncie, Indiana, who served

in 1975, has the longest tenure as a

Past President.

John L. Gilfoil, CLU, CFP


OBJECTION: I HAVE ENOUGH INSURANCE

SATISFY A NEED

When I present clients with annuity options that provide lifetime income, I tell them: “When you were young, you insured yourself against dying too soon. Likewise, the use of annuities helps you insure against your biggest retirement risk: living too long.

“I can help you make sure your money doesn’t die before you do.”— Randy L. Scritchfield, CFP, LUTCF, Damascus, Maryland, 30-year MDRT member

Rather than promoting our products, we should promote the service we provide. Promote yourself as a professional who provides a valuable service, rather than a peddler of insurance products. The notion that your purpose is to satisfy a need instead of selling a policy can make pros-pects more receptive to meeting with you. Obtain appointments by offering a free consulta-

tion to review prospects’ insurance programs.— Cherian Panavila John, MBA, FAIQ (CII), Abu Dhabi, United Arab Emirates, 5-year MDRT memberCOMPREHENSIVE SERVICE

My passion to serve my clients drives me to always find solutions for them. I have become a comprehen-sive financial planner, so I always review my clients’ needs — everything from life coverage to investments. In the past, I found that if

I leave one area uncovered by my services, my client will be approached by banks or other advisors, or they will find ways to have their needs met elsewhere.— Marcelo H. de Rada, La Paz, Bolivia, 12-year MDRT member

Here’s my answer: “If I gave you today, in cash, all of your death benefits, and in return, you gave me all of your paychecks for the rest of your life, would you do it? If not, then you don’t have enough insurance. Why are you asking your family to make that exchange?”— Robert L. Avery II, CLU, ChFC, Denver, Colorado, 29-year MDRT member

RETIREMENT PLANNING

The interview begins with the first disturbing question. Try this one:

“Mr. Prospect, I am curious, are you satisfied with your current

relationship with money?”— Marcus T. Henderson Sr., LUTCF,

Brentwood, Tennessee, 22-year MDRT member

2015


Meet your leaders

INSIDE MDRT

2015

September 1 marked the day MDRT’s 2015 leadership took office. The Executive Committee, Management Council and committees all have new members who are poised to work hard on behalf of their constituents.

PRESIDENTCaroline A. Banks, APFS, of London, England, is a 25-year MDRT member with 20 Top of the Table qualifications. She is active in the “New Model Advis-er” movement in the United Kingdom and is director of Caroline Banks & Associates. Banks shows her passion for MDRT through presentations at Annu-al Meetings, as well as Top of the Table and MDRT Experience meetings. Her commitment extends to

countries throughout the world, where she’s visited and worked with advisors as a committee member for various divisions of the association. Banks aims to share the benefits of MDRT with advisors worldwide and was instrumental in introducing the association to Poland. Through her travels, she works to pro-mote ethical financial practices and industry improvements. Banks is an active volunteer for the MDRT Foundation, achieving Diamond Knight status and receiving a Quality of Life Award for her work assisting the PSP Association in battling progressive supranuclear palsy (PSP). (Read more on Page 28)

IMMEDIATE PAST PRESIDENTMichelle L. Hoesly, CLU, ChFC, of Norfolk, Virginia, is a 35-year MDRT member with three Court of the Ta-ble and 11 Top of the Table honors. She is president of Resource 1 Inc. Her commitment as a volunteer with the Round Table began in 1983 and is highlighted by her leadership in three Divisional Vice President roles: the Annual Meeting Program Development Committee (1996), Communications (2003) and,

most recently, Top of the Table (2009). She has attended 34 Annual Meetings and is an Excalibur Knight-level donor of the MDRT Foundation, serving as a member of its Board of Trustees from 2005 to 2007. Hoesly is an internation-ally recognized speaker who has spoken at several MDRT meetings, and has appeared on CNN. She is frequently quoted on financial issues by major pub-lications, including The Wall Street Journal, Kiplinger’s and Financial Times. In 1985, she joined three other MDRT members in establishing the Make-A-Wish Foundation of Eastern Virginia and served as president of the founding board.

FIRST VICE PRESIDENTBrian D. Heckert, CLU, ChFC, of Nashville, Illinois, is a 26-year MDRT member with seven Court of the Table and Top of the Table qualifications. He is also an Excalibur Knight of the MDRT Foundation and a member of its Inner Circle Society. Heckert is president of Financial Solutions Midwest LLC. His MDRT volunteerism includes speaking at MDRT Annual Meetings and the MDRT Experience, as well as service on multiple MDRT com-mittees and task forces. He has served on the MDRT Foundation Board of Trustees and has three appointments as MDRT Divisional Vice President: Membership and Leadership (2012), Annual Meeting Program Development Committee (2010) and Annual Meeting Pro-gram General Arrangements (2000). Heckert is a frequent industry speaker and has been quoted in numerous business, industry and association publications. >>


INSIDE MDRT

Annual Meeting Program Development

Divisional Vice PresidentSteven A. Plewes, CLU, ChFC Main Platform and Special Sessions ChairHeather M. Courneya, CLU, CH.F.C. Focus Sessions ChairEdward C. Skelly, CLU, ChFC ConneXion Zone ChairScott Roger Lebin, RFC

Annual Meeting Program General Arrangements

Divisional Vice PresidentAurora L. Tancock, FLMI, CFP Member Enhancement Committee ChairTodd H. Hruby, LUTCF Member Logistics Committee ChairRino V. Cipparrone, CFP, CLU Member Services Committee ChairDavid Pritchard, Dip PFS

Best Practices

Divisional Vice PresidentCheol Ung Kim

Mentoring Committee ChairArlyn Tiong Tan, MBA Agency Development Committee ChairSeung Bong Lee Whole Person Committee ChairEunice Chen Business Development

Divisional Vice PresidentFrank W. Andreoli, RFC Mentoring Committee ChairEugene Bozzi, LUTCF Client Strategies Committee ChairJiro Kato, CFP

SECOND VICE PRESIDENTMark J. Hanna, CLU, ChFC, of Concord, California, is a 26-year MDRT member with three Court of the Table and 15 Top of the Table qualifications. He is also

an Excalibur Knight of the MDRT Foundation and a member of its Inner Circle Society. Hanna is CEO of Hanna Global Solutions, an employee bene-fits advisory and administration firm providing global human resource management solutions. His Round Table involvement is extensive, with service on multiple committees and task forces, as well as presentations at several Round Table meet-ings, including the MDRT Annual Meeting, MDRT Experience and Top of the Table Annual Meeting. Highlighted leadership roles include service as 2013 Chair of the Task Force for a Big Life, 2012 Chair of the Exhibits Task Force and 2007 Division-al Vice President of Top of the Table. Hanna has served on many local, state and national boards of directors, including the Society of Financial Service Professionals (FSP) and the National Association of Insurance and Financial Advisors (NAIFA)–Califor-nia. He also served as president of both the Golden Gate and East Bay Chapters of the Society of FSP and as president of NAIFA–San Francisco.

SECRETARYJames Douglas Pittman, CLU, CFP, of Portland, Oregon, is a 40-year MDRT member with 14 Court of the Table and four Top of the Table qualifications. He is also a Diamond Knight of

the MDRT Foundation and served on its Board of Trustees. Pittman is president of Insurance Consult-ing Services Inc., a full-service insurance brokerage and consulting firm. His MDRT experience includes serving four times as Divisional Vice President and nine times as Chair. In 2008, NAIFA–Oregon hon-ored Pittman with the prestigious H.G. “Bud” Horn Award, recognizing long-term, outstanding contri-butions to the life insurance industry in Oregon.

Divisional Vice Presidents and ChairsFourteen Divisional Vice Presidents join the Executive Committee

on Management Council, an advisory body that reviews com-mittee actions and recommendations. Divisional Vice Presidents

are responsible for monitoring multiple committees in their respective divisions. The Chairs lead their committees and task forces in the com-pletion of assignments that aid the organization in meeting its goals.


Pre- and Post- Retirement Committee ChairJohn L. Gilfoil, CLU, CFP Business Principles

Divisional Vice PresidentKathleen R. Benjamin, CFP, CPA U.S. Tax Planning Committee ChairH. Larry Fortenberry, CLU, ChFC Financial Planning Committee ChairRoy Hall Best Practices for Fee-Based Practices Committee ChairMathew Thomas Fogarty, CFP, Dip FP Experience Meeting

Divisional Vice PresidentJames M. McEvoy, CLU, AEP

Program Development Committee Chair (2016 meeting)Alessandro M. Forte, Dip PFS Host Country Committee ChairTse Lap Yee Finance

Divisional Vice PresidentH. Richard Dobson Jr., CFP Member Communication Division 1

Divisional Vice PresidentClaudio Miguel Mejia Member Communication Division 2

Divisional Vice PresidentLogan Naidu, ACII, CFP

Membership

Divisional Vice PresidentSimon John Gibson, Dip PFS Membership Committee ChairJ. Marvin Walker, CLU, ChFC Bylaws and Ethics Committee ChairAdam A. Solano Jr. Court of the Table Task Force ChairJo Ann E. Favia, CLU, ChFC Practice Management

Divisional Vice PresidentRobert N. Garneau, CLU, ChFC Technology Committee ChairPeter Hill, ChFC Staff Operations Committee ChairMark S. Gaunya, GBA Study Groups Committee ChairDavid L. Alarid

Productivity

Divisional Vice PresidentRajesh Chheda, ACA, CFP Technology Committee ChairRickson Joel D’Souza Client Strategies Committee ChairKeita Honda Pre- and Post- Retirement Committee ChairAnne-Marie Lee Li Mei, ChFC, CLU Resource Zone

Divisional Vice PresidentSarah J. Kaelberer, CFP, ChFC Resource Zone Committee ChairGregory B. Gagne, ChFC Resource Zone Con-tent Committee ChairBarbara Brazda Dietze, CLU, ChFC

Young Professionals Track Committee ChairDevang Patel Top of the Table (effective September 21, 2014)

Divisional Vice PresidentDale W. Martin, CLU, ChFC Top of the Table Immediate Past Divisional Vice PresidentJason J. Dudum, LUTCF

Top of the Table Vice ChairWilliam J. Rossi, CFP, ChFC

Top of the Table Pro-gram Committee ChairEdward E. Leisher, CLU Top of the Table Industry Relations Committee ChairCurtis V. Cloke, CLTC, LUTCF Top of the Table Member Content CommitteeRick B. Stanzione, RFC, CSA


2015 MCC Chairs announced

DIVISION 1REGION ARegional ChairRichenda L. CrawfordVancouver, British Columbia, [email protected] Zone 1: CanadaWade A. Baldwin, CFPCalgary, Alberta, Canadawade.baldwin@ sunlife.com Zone 8: USARyan J. PinneyRoseville, Californiarpinney@pinneyinsur ance.com Zone 13: OceaniaRoss Gross HultgrenGeelong West, Victoria, [email protected] REGION BRegional ChairPatricia Tello-Vallarino, AFAPanama City, [email protected]

Zone 9: CaribbeanSaad Anthony Baksh, BScMarabella, Trinidad and [email protected] Zone 11: Latin AmericaClaudio Alejandro SraerBuenos Aires, Argentinaclaudio.sraer@ hsbc.com.ar REGION CRegional ChairEleni D. Gryparis, LUTCFAthens, [email protected] Zone 10: EuropeDimosthenis SykovarisChalkida, [email protected] Zone 12: Middle East and AfricaCherian Panavila John, MBA, FAIQ (CII)Abu Dhabi, United Arab [email protected]

DIVISION 2REGION DRegional ChairKyo Wook SonSeoul, [email protected] Zone 5: JapanHirofumi MorimotoTokyo, [email protected] Zone 6: KoreaDong Yeon KimSeoul, Republic of [email protected]

REGION ERegional ChairPei Hua TsaiTaipei, Taiwanpeggy590504@ yahoo.com.tw Zone 2: ChinaYe Yun YanXiamen, People’s Republic of [email protected] Zone 3: Hong Kong and MacauLeung Mo Ling AnnieCauseway Bay, Hong [email protected] Zone 7: TaiwanJoseph FangTaipei, Taiwanjosephfang520@ gmail.com

REGION FRegional ChairWithoon LertpanomwanBangkok, Thailandwithoon_alan@ hotmail.com Zone 4: South AsiaPriti Ajit Kucheria, LUTCF, CFPMumbai, [email protected] Zone 14: Southeast AsiaLorna Chan Lao, LUTCFMakati, Philippineslornalao09@ yahoo.com.ph

INSIDE MDRT

The Member Communication Committee (MCC) is a network of MDRT members who are appoint-ed to serve as regional contacts for current and prospective members worldwide. The MCC is divided into two divisions, each with their own Divisional Vice President. Claudio Miguel Mejia, a 13-year MDRT member from Maldonado, Uruguay, is in charge of Division 1, while Logan Naidu, ACII, CFP, a 33-year MDRT member from Durban, South Africa, heads Division 2.

The 2014 Annual Meeting flag ceremony.


As a mathematics major in college, Roger A. Seim, MSFS, CLU, mastered an in-depth understanding of complicated

equations and formulas. Over the years, Seim has also developed a formula for his approach to life: A focused, diligent effort leads to success, which in turn creates time and financial resources to give back to charity. As he steps into the role of 2015 President of the MDRT Foundation, Seim, a 33-year MDRT member and MDRT Foundation Platinum Knight from Maple Grove, Minnesota, plans to apply this to the MDRT Foundation.

Seim attributes his strong work ethic and passion for charitable involvement to his first role models. “My parents were both raised on farms, and as a result, they learned the importance of working hard at an early age — an important life lesson they later shared with their own children,” Seim said. After Seim graduated college in 1977, he decided to join his father’s financial services business so he could rent his first apartment.

Early on, Seim learned he enjoyed working with businesspeople, and today his business focuses on the insurance and financial needs of small- and medium-sized business owners. He believes MDRT membership has played a signif-icant role in his business success and personal life. “MDRT provides a valuable learning forum, which shares methods and techniques to over-come our business challenges,” he said.

Seim has leveraged his involvement with the MDRT Foundation to give back. “The MDRT Foundation is a great resource for our industry. When I learned I could help a local charity by applying for a grant, I decided to get involved,” Seim explained. His involvement with the MDRT

Foundation includes volunteering for numerous Foundation committees and Phonathons. He has also participated in MDRT Foundation commu-nity service projects, where he helped build a home and a playground in Indianapolis, Indiana, packed life-saving meals during the Million Meal Challenge and most recently distributed shoes for those affected by Superstorm Sandy.

To date, the MDRT Foundation has awarded more than $29 million in grants to charities in 70 countries. Looking ahead with his fellow officers, Seim has a priority focus to expand global member involvement. The Foundation added a global task force and service project committee to expand awareness, and plans to provide hands-on volunteer service project opportunities that serve global needs. “The MDRT Foundation serves all MDRT members around the globe,” Seim said. “We are excited to advance the MDRT Foundation’s mission by sharing the story of grants and service projects with members worldwide.” RTT

Fiona Odumosu-Watkins is the MDRT Foundation’s communications and recognition supervisor. Contact her at [email protected].

INSIDE MDRT | MDRT FOUNDATION

BY FIONA ODUMOSU-WATKINS

Seim elected Foundation President

“The MDRT Foundation

is a great resource for

our industry.”

Roger Seim


Who is the MDRT Foundation?2015 MDRT FOUNDATION

BOARD OF TRUSTEES

Roger A. Seim, MSFS, CLUPresident Brent R. Kimball, CFP, ChFCImmediate Past President James V. Durkin, CFP, CLUVice President H. Richard Dobson Jr., CFPSecretary Marc A. Silverman, CLU, ChFCTreasurer TRUSTEES

Robert Hintze Colyar, CLU, ChFC

Gary T. Huffman, CLU, ChFC

Peter R. Magni, LUTCF

Theodore S. Rusinoff, CFP

Robert C. Savage, CLU, ChFC

Brian G. Tarpey

Steven Valerius, FLMI*

Robert W. Waddell

Brian P. Walsh, CLU, ChFC

Robert Wasky*

Ross Vanderwolf, CFP Jerry D. Semler, CLU

Trustee Emeritus Michelle L. Hoesly, CLU, ChFC

Executive Committee Liaison

*Corporate executives who are not MDRT members

The MDRT Foundation is a nonprofit charitable organization established by MDRT. The Foundation’s mission is to increase member and industry participation and to give funds to charitable organizations worldwide.

Since 1959, the Foundation’s charitable efforts have changed lives worldwide, and its organizational success has been driven by a legacy of dedicated and visionary member volunteer leaders: the MDRT Foundation Board of Trustees.

The MDRT Foundation is governed by an 18-person Board of Trustees, includ-ing five Officers and two ex-officio members (the MDRT Executive Committee Liaison and MDRT Foundation Executive Director) and a Trustee Emeritus. The Trustees’ main responsibilities include providing oversight, helping with member awareness and fundraising efforts, and supporting the Foundation with generous donations.

The five MDRT Foundation Officer positions include: President, Immediate Past President, Vice President, Treasurer and Secretary. The Officers oversee the Foundation’s Board of Trustees and lead the strategic direction of the organiza-tion. Trustees are appointed by the Officers of the MDRT Foundation, and Trust-ees serve a term of three years.

“The Board of Trustees provides vision and strategy for the MDRT Foundation’s programs,” said Michele L. Stauff, CFRE, MDRT Foundation executive director. “Their passion to help those in need drives all of our efforts.” RTT

INSIDE MDRT | MDRT FOUNDATION


Officers of the MDRT Foundation, left to right: Kimball, Seim, Durkin, Silverman, Dobson.


To find out more go to: www.mdrtfoundation.org

Using speaker’s fees for charity

When you speak at an industry event or other engagement, you can request your speaker’s fee to be

donated directly to the MDRT Foundation. You get donor credit for this gift, and the gift made in your honor will support children and individuals in need worldwide. J. Leland Davis, LUTCF, a 25-year MDRT member and MDRT Foundation Gold Knight from Greenwood Village, Colorado, uses the speaker’s fee gifts as a way to increase his charitable support of the MDRT Foundation:

“For many years, I have spoken to various fi-nancial industry audiences, both large and small,

including local agencies, GAMA organizations, and nearby NAIFA meetings,” he said. “I soon began speaking during the annual conferences of major companies in our industry for a fee. Several years ago, I began donating my speaking fees to the MDRT Foundation. At this point in my career, they are relatively modest; however, every few thousand dollars is a meaningful gift to people in need who are served by the MDRT Foundation.”

For more information about ways you can give to the MDRT Foundation, please visit: www.mdrtfoundation.org. RTT



INSIDE MDRT

In September 2012, Alex Sheen’s father lost his life to stage 4 small cell lung cancer. Rather than focus on how his father died,

Sheen said, he made it a point to focus on how he lived. And it gave him an idea.

When he was asked to read his father’s eulogy, he decided to title it “Because I Said I Would” — spurring the idea for his first “promise card.”

“It’s simple to use,” he said. “You take a promise you have in your life, something big, something small, you take that promise and you write it on the card … You go, you fulfill your promise, you earn your card back and keep it as a reminder that you are a person of honor, a person of your word.”

Sheen’s idea reached the Internet, effectively becoming a global social movement. Today, his nonprofit company, aptly named Because I Said I Would, has distributed more than 1 million promise cards to more than 85 countries. Sheen himself once walked 240 miles across the state of Ohio to fill one of his cards.

Sheen shared his story on the Main Platform stage during the 2014 Annual Meeting in Toron-to, Ontario, Canada. The Main Platform audi-ence has long been MDRT’s largest, filling the program’s venues to capacity each year. Attend-ees arrive early to benefit from the perspectives of industry leaders and trend-watchers to be moved, entertained and inspired to take in the rest of the meeting. Main Platform’s broad, yet accessible, messaging covers themes applicable to all audience members, and it aims to foster confidence and leadership that carry the attend-ee not just through the meeting, but back home.

Thousands took advantage of the speakers hand-selected by MDRT members in 2014 to

hear about everything from a woman’s story of being kidnapped in Somalia to

The new MDRT SToRehaS exTRaoRDinaRy ToolS

To help you focuS on excellence.

focus on success

focus on achievement

focus on the future

Video club

insignia collection

education

Check out our new and improved shopping experience.

Visit www.mdrtstore.org today!

Instant accessUnlock the best of the Annual Meeting in the MDRT Video Club today.BY ABBY PUCHNER

real stories of life insurance in action. Simon Bai-ley, author and founder of the Brilliance Institute, discussed ways for attendees to tap into their “inner brilliance” using opportunities found in their relationships with others — and even their daily routines.

“A job is what a person is paid to do, but releas-ing your brilliance is what you are made to do,” he said. “And when you release your brilliance, you stop selling and you start connecting.”

Those who were unable to attend the Annual Meeting have access to the on-site video record-ings of these presentations, as well as MDRT’s full library of Main Platform recordings, at the MDRT Video Club. Members use them not only for ideas and personal fulfillment, but as a shared tool in their organizations, incorporating them into group training sessions and even in front of clients.

The Video Club is available on-demand at www.mdrtvideoclub.com for an annual fee. Register using your MDRT ID number, then log in to receive access to MDRT’s entire library of recordings whenever you’d like. RTT

Sheen’s idea reached the

Internet, effectively

becoming a global social

movement.

Simon Bailey

Alex Sheen

INSIDE MDRT


The new MDRT SToRehaS exTRaoRDinaRy ToolS

To help you focuS on excellence.

focus on success

focus on achievement

focus on the future

Video club

insignia collection

education

Check out our new and improved shopping experience.

Visit www.mdrtstore.org today!


1971 President: Richard G. Bowers Sr., CLUBY KATHRYN FURTAW KEUNEKE, CAE

R ichard G. Bow-ers Sr., CLU, of Keokuk, Iowa,

MDRT’s 1971 President, died July 17. He was 94.

Bowers first joined MDRT in 1954, ac-cumulating 58 years of membership. He

achieved two Court of the Table and one Top of the Table qualifications during his career, and he attended 45 Annual Meetings and one Top of the Table Annual Meeting. He served as MDRT Foundation President in 1977 and was a Gold Knight-level contributor.

A 1942 graduate of the University of Iowa, Bowers operated a men’s clothing store while recovering from an injury he sustained in France during World War II, where he served as a U.S. Army infantry officer. He intended to enter law school, but an attorney friend suggested that he consider going into the life insurance business instead. Bowers decided to try it at age 32, as his family already knew the value of the product. His wife’s father was killed in a car accident when she was a child, and the life insurance policy pro-vided for her family. Her father had been insured by a New York Life policy, so Bowers pursued a contract with that company. In his first full year in the business, he qualified for MDRT.

Bowers attended his first Annual Meeting in 1955 at the Greenbrier in White Sulphur Springs, West Virginia. “I came back from that first meeting completely charged and challenged to enter the business insurance marketplace,” Bowers said in 1989. “I was impressed with the members who participated in the meeting and

told us just how they did it. There was nothing hypothetical; these men told it just as it was.”

What he learned at that meeting would help him transition from individuals to the business market. He applied what he learned with three brothers who had just opened a small contract-ing company. He helped them with a buy-sell agreement in 1956, and in 1989, their company had grown to be worth more than $10 million.

In celebration of MDRT’s 75th anniversary in 2002, Bowers said: “MDRT membership opens our lives to many splendid things. We grow as a Whole Person, a businessperson, a fluent communicator and a true professional. We share ideas with friends from all over the world. We broaden our minds far beyond life insurance. This is why the Annual Meeting is the greatest teaching meeting in any industry.”

Bowers said he was most proud of his concept of “The Agent as a Businessman,” which became the theme of the Annual Meeting during his Presidential year. A manual by the same name was also published. “I think it added a new level to being not only a successful salesman, but also a successful businessman,” he said. This concept in 1971 paved the way for MDRT members to focus attention on running a profitable business, and considering topics such as business continuation.

In Bowers’ own practice, he added his son to ensure continuity for his clients. Today, Richard G. Bowers, CLU, ChFC, of Le Claire, Iowa, is a 38-year MDRT member.

“I hope this will give you an idea of what can evolve from a young man spending his early years soaking up and retaining what he has learned from the Million Dollar Round Table,” he said in 1989. RTT

“MDRT membership

opens our lives to many splen-

did things.”— Bowers in 2002

INSIDE MDRTINSIDE MDRT


CONTRIBUTORSDavid L. Alarid, Newport Beach, California

W. Robin Christensen, FICF, LUTCF, Pensacola, Florida

Leroy Anthony Dallas, EMBA, LUTCF, Kingston, Jamaica

Haresh Gordon Daswaney, CFP, Quarry Bay, Hong Kong

Meredith Gail Fine, New York, New York

Chee Hong Gan, ChFC, CLU, Singapore

Simon John Gibson, Dip PFS, Newmarket, England

John L. Gilfoil, CLU, CFP, Springfield, Massachusetts

Millard J. Grauer, CLU, ChFC, Longboat Key, Florida

W.W. (Buzz) Hankinson, CLU, CFP, Augusta, Georgia

Matthew T. Hoesly, CFP, ChFC, Norfolk, Virginia

Brian Robert Kennaugh, B.Bus., Belmont, New South Wales, Australia

Pearlyn Koh, Singapore

Priti Ajit Kucheria, LUTCF, CFP, Mumbai, India

Thomas F. Levasseur, CLU, CLTC, Dover, New Hampshire

Paula M. MacMillan, BA, CHS, Winnipeg, Manitoba, Canada

Diane L. McCurdy, CFP, EPC, Vancouver, British Columbia, Canada

Juli McNeely, Spencer, Wisconsin

Angus D. McQueen, Dip CII, Dip PFS, Melbourne, Victoria, Australia

Allan T. Mendels, CLU, ChFC, Roslyn, New York

Mok Kin Bik, Quarry Bay, Hong Kong

Michael Morrow, CFP, Thunder Bay, Ontario, Canada

Scott S. Paterick, CLU, ChFC, Wisconsin Rapids, Wisconsin

Susan Catherine Paterson, FChFP, Loganholme, Queensland, Australia

W. Luther Pierce IV, CLU, Greensboro, North Carolina

Richard J. Presky, LUTCF, CLU, Rome, New York

Philip A. Rousseaux, ChFC, CIMA, Towson, Maryland

Theodore S. Rusinoff, CFP, Hudson, Ohio

John L. Thomas, CLU, MSFS, Eugene, Oregon

Submit your suggestions and contributions to [email protected].

Thank you for sharing

As MDRT’s official publication, Round the Table is published

to share ideas among its members. We’d like to thank those who contributed their

ideas in writing for the benefit of their fellow

members during the 2014 organizational year.


MDRT has announced the formation of a new department and an executive staff promotion.

The new Strategic Engagement Depart-ment is led by director Pamela Brown, CMP, CAE, and focuses on developing content for members in all stages of their careers across a wide range of

platforms, while also overseeing the committee system.

“The new Strategic Engagement Department will allow MDRT to create relevant and valuable

content,” said MDRT CEO Stephen P. Stahr, CAE. “Throughout her 26-year career at MDRT, Pam has demonstrated an unwavering commit-ment to providing value to our members, and I am confident she will continue to do this in her new role.”

Brown previously served as director of the Marketing and Communications Department. “I am looking forward to creating more en-gagement opportunities for our membership, by working with our staff and members to create and share relevant content that attracts, educates, motivates and inspires members to achieve their goals,” said Brown.

Don Noverini, an 11-year member of MDRT staff, has been named director of Marketing Communica-tions. This department will continue providing all marketing efforts for MDRT and its meetings

and events, along with fueling the MDRT Store. “Don brings considerable talent and mar-

keting experience to his new role, and I look forward to working with him as we position MDRT for future growth and success,” Stahr said. Noverini previously served as MDRT’s marketing manager.

“I’m honored to be working with such a strong brand and a membership that is pas-sionate about upholding MDRT’s reputation,” Noverini said. “The marketing team will contin-ue to be stewards of MDRT’s rich traditions, and we look forward to finding new and insightful ways to share the value of the organization with our many audiences.” RTT

Expanded servicesA new director is named, while a longtime employee takes on a new challenge.BY SCOTT ROGERS

PICNIC ON THE PAVEMENT

MDRT staff held a picnic on August 6 to recognize all the hard work staff put in to make the 2014 Annual Meeting a success, and to celebrate one of staff’s core values: fun.

INSIDE MDRTINSIDE MDRT


TRUE TALES

Don’t dismiss the little guy

or gal just because they can’t afford a

variable life policy.

My best friend, Rosana, lost her hus-band, Ed, to a heart attack in January. He left behind four amazing chil-

dren, ages 5, 8, 12 and 14. He also left no savings and no life insurance.

Since the day I started my career in this field, I have been begging Rosana and Ed to do some planning. “Get life insurance, put money into a retirement fund, get a will, set up a power of attorney and do a health care proxy,” I told them. They did nothing. Ed thought that since his grandmother was still alive at 103, he had lots of time.

Ed ran a cafe in a corporate building and just managed to pay his family’s bills while Rosana took care of the kids. Now the cafe is closed — Ed was the entire business — and she is left trying to figure out how to survive.

As her best friend, I’m there for the emotion-al support, but as a financial advisor, I’m left helpless! How does she pay the bills, keep the house and put food on the table? Never in my life did I think I would be on the phone with the welfare department discussing food stamps, or with Social Security discussing survivor benefits for the children.

These kids are now calling me their other

mommy because they know I’m going to be there to help raise them. When an 8-year-old thanks you for caring for her family, it tears your heart out. A simple term life policy would have prevented all of this.

We all are trying to get that high-net-worth client to make lots of commission. But don’t dismiss the little guy or gal just because they can’t afford a variable life policy. They probably need your help more than anyone, as my story illustrates. If you don’t want that small sale, then find someone in the office who does. Find me. You also should not forget that someone who does not have a lot of money today could one day wind up wealthy. My dad’s biggest client was a modest attorney until he stumbled into the big-gest legal case of his life at the end of his career.

You need to ask everyone you know: family, friends and friends of friends. Be relentless and annoying. I know I’m going to use my anger at Ed for not taking action to protect his family to push me to reach bigger goals this year.

Take it from me, you never want to go to a funeral without knowing that the survivors are taken care of. The last thing you want is to think about what could have been if only you had done your job. RTT

A simple policyHelp those who need help, even if it’s for a smaller sale.BY MEREDITH GAIL FINE


During its 54-year history, MDRT’s official magazine has gone through numerous changes. Beginning in January 1960, Round the Table (RTT) was a black and white newsletter. In the inaugural issue, an introduction by the 1956 MDRT President Arthur F. Priebe, CLU, of Rock-ford, Illinois, stated the purpose of the news-letter was “To give you more news about your Table … quicker!”

Throughout the 1960s, RTT continued as a newsletter, beginning with four pages, but fre-quently expanding to eight pages.

By 1973, MDRT recognized the need to expand RTT permanently to a full quarterly magazine. The new layout included 20 pages and covered not just MDRT news but also articles, columns, and profiles on topics and people pertinent to the businesses of MDRT members. In an effort to bring more content more often to members, RTT expanded again to 36 pages and became a bimonthly magazine in 1982.

During the last 15 years, to answer the de-mands of changing technology, RTT established an online presence, making it even easier for members to access articles wherever they are. Issues as far back as 1999 are available today in the archives of www.roundthetable.org.

Today, RTT is a full-color, 56-page bimonthly magazine offered in nine languages. It is printed and also accessible on any mobile device. RTT’s mission has evolved from providing just organi-zational news to delivering business solutions, transferable ideas, practice management and technology tips, and relevant content for pro-ducers at every career stage. As MDRT’s official publication, it connects members with ideas and each other through profiles on producers around the world, and information on MDRT’s programs and events. RTT

COLLABORATION

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page 38

Meet the Executive Committee NomineePAGE 34

Teamwork:Pathway to mega salesPAGE 42

Study groups around the globePAGE 46

OFFICIAL PUBLICATION OF THE MILLION DOLLAR ROUND TABLE

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“Make sure you are working with people who are honest, trustworthy and

are contributing to the partnership. If you get all these things correct,the synergy will exceed your greatest expectation.”Leroy Anthony Dallas, EMBA, LUTCF, Page 38

ANNUAL MEETING2014 - JUNE 8 to 11, TORONTO, ONTARIO, CANADATOP OF THE TABLE ANNUAL MEETING2014 - SEPTEMBER 17 to 20, SAN FRANCISCO, CALIFORNIA

MDRT EXPERIENCE2016 - JANUARY 28 to 30, HONG KONG

8.5" Trim

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MDRT May/June 2014 CoverPrepared by Michael Dorich4-color

Trim 17.14" x 10.875"

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lookingBACKMember magazine

Explore the sessions from Toronto2014 Annual Meeting PresentationsNow Available

Simon BaileyRelease Your Brilliance

Daryl LovegrovePassion, Perseverance and Puccini

Alex Sheen because I said I would

For a complete listing of the 2014 Annual Meeting presentations available in DVD, CD, and MP3 formats please visit www.mdrtstore.org.

ROUND TABLEOFFICIAL PUBLICATION OF THE MILLION DOLLAR ROUND TABLE | SEPT/OCT 2014

the

Be an irresistible leader 12 | Retain and motivate staff 20 | 2015 leaders take office 43

2015 MDRT PRESIDENT

Caroline A.Banks, APFS

ANNUAL MEETING2015 - JUNE 14 TO 17, NEW ORLEANS, LOUISIANA

TOP OF THE TABLE ANNUAL MEETING2014 - SEPTEMBER 17 TO 20, SAN FRANCISCO, CALIFORNIA

MDRT EXPERIENCE2016 - JANUARY 28 TO 30, HONG KONG


“You can’t get life insurance success out of a textbook.”From “The other side,” Page 24

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Round the table magazine . september - October 2014

Economy & Finance

kathryn furtaw keuneke

pei hua tsai

impact multiple sources

divisional vice president

conduct stay interviews

term rate sheets

rtt elizabeth fuhrman

clear financial partners