© tim voorhees, jd, mba, 1996-2008 1 summary of best practices session e updated february 10, 2008...

© Tim Voorhees, JD, MBA, 1996-2008

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Summary of Best Practices Summary of Best Practices Session ESession EUpdated February 10, 2008Updated February 10, 2008

Generating More Generating More Referrals from the Top Referrals from the Top

Target MarketsTarget Markets


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Focusing the Adviser’s Unique Ability

• Reviewing the need for the CAPABLE Team

• Coaching to develop unique ability– Wealth Counselor– Wealth Coach– Wealth Design Counselor– Licensed Implementer – Educator– Other


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How Successful Advisers Position Themselves in the

Market• Maintaining an inventory of tactical

tools• Offering virtual back office support• Doing educational seminars• Planning joint cases• Working with accountants, bankers,

charitable development officers, attorneys, and other referral sources



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Best Sources of Referrals• CPAs• Bank Trust Officers• Charitable Development Officers• Attorneys• Insurance agents• M&A brokers• Real Estate brokers



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Developing Professional Partnerships

With Accountants



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Major Trend Toward Professional Partnerships

With CPA’s• ValMark • Merrill Lynch• Raymond James• HD Vest• Equitable• First Global• Lincoln• Minnesota

Mutual• PartnersFinancialSee http://vfos.com/Journal_of_Accountancy-BestPractices.pdf

http://vfos.com/Journal_of_Accountancy-BestPractices.pdf


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Why Form Partnerships with CPAs

• Proven Models Exist. Many CPAs already moving to integrate financial services into their practices.

• CPA firms known for high level of financial expertise and service.

• Client Trust Is Inherent – Recent studies rank the CPA as the client’s most-trusted financial adviser.

• Client Knowledge Exists – Most CPA firms familiar with the information needed for proper planning.


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Distinctions of Successful CPA Alliance Programs

• Clearly address roles and goals of planning team members

• Carefully address the key issues of independence and objectivity

• Clearly define client expectations • Comply with state and regulatory

requirements • Conform to CPA Standards of

Professional Conduct


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• Define equitable and proper compensation arrangements.

• Distinguish firm from other BD's by providing tactical plans as well as comprehensive plans

• Maintain the highest professional standards of technical competence and long-term commitment to clients


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• Offer a full range of non-proprietary financial services

• Offer Independent Assessments – provide independent review of amount and type of insurance or investments


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• Offer strong local representation backed by comprehensive national resources

• Provide clear written client disclosures

• Support clients with comprehensive technical, marketing, and computer services provided by professional specialists


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• Maintain RIA affiliations in accordance with the 1940 Act.

• Recognize how 1940 Act exemptions lost if you share commissions with the CPA


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The Adviser Must Assist the CPA

• In spotting estate planning opportunities• In spotting insurance sales opportunities• In spotting investment sale opportunities


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The Adviser Must Assist the CPA

• In communicating the message with brochures, web sites, and sample plans

• With conducting Discovery Sessions and Family Retreats

• With plan design and illustration• With advanced sales support


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Developing Alliances With

Bank Trust Officers

Listen to additional audio clips on slides 23, 33, and 43


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Developing Alliances With Bank Trust Officers

• Banks often want to benefit from lucrative opportunities to sell insurance to top private banking clients.

• Banks want to overcome perception of clients that the banks lack objectivity when offering insurance.

• Banks realize that they lack sophisticated planning expertise such as is offered by VFOS.


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What Joint Venture Relationships Appeal to

Banks• Banks more likely interested in

relationship with a firm that is national in scope and has established protocols for sophisticated cases.

• Banks want want to be assured that members of the planning team will be around to service the business in the future.

• Banks want to retain client control.


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Benefits to Advisers

• Gain access to high net worth banking clients

• Favorable introductions• Control over process via comprehensive

wealth design or tactical plans


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Developing Alliances With Bank Trust Officers

Continued • Offer a turn-key solution with

brochures, protocols, etc. • Focus on your unique abilities


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Prepare a Marketing Kit for Presenting Concepts to Bank• Pre-approach letter from Adviser to bank

officer• Brochure outlining concept for use by

Adviser firm with Bank • PowerPoint slide show with notes for

producer to use with bank to sell program• Sample Family Wealth Blueprint• Sample Tactical Plan customized with bank’s

name• Outline of marketing suggestions• Sample brochure from Bank to customer

outlining program


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Prepare a Marketing Kit for Presenting Concepts to Bank

• Sample letters from bank to customer outlining reason to come in for visit

• Sample introductory Data Organizer (to be provided by the bank to the customer to initiate the fact-finding process.)

• Outline of the work flow process from fact finding to family education

• Sample Costs and Benefits of program for Bank

• Enrollment Notebook detailing compliance issues and procedures


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Steps in Process

• Marketing• Financial Checkup• Planning Process• Implementation Process


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Charitable Development

Officers

Listen to additional audio clips on slides 33 and 43


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Embrace the 21st Century Role of the

Donor’s AdviserTransactions versus RelationshipsPlanned Giving Person versus Planning Team Strategies versus Optimized Wealth PlansOrganizational Needs versus Donor Needs/VisionLimited Resources versus Abundant ResourcesDisposable Income versus Unneeded AssetsFixed Income Tools versus Tax-efficient PortfoliosLimited Donor Control versus Much Donor ControlBarbarians at the Gate versus CollaborativesZero Estate Taxes versus Zero Income/Estate

Tax


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Charitable Development Officers

• Most charitable development officers focus on the 7% of assets that are liquid

• You can help the CDO focus on the illiquid 93%


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7%7%

Difficult to Give Out of Cash Flow

Illiquid Assets

Liquid Assets


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Developing Alliances With Charitable Development

Officers• Display the sample plans• Prepare initial plans for board

members• Provide current gifts equal to twice

the fees paid• Provide millions of deferred gifts


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Developing Alliances With Charitable

Development Officers• Identify the development officers with

the best relationships • Offer turnkey support with brochures,

slide shows, etc. • Position your firm as the objective third

party• Target the over-taxed and charitably-

inclined• Communicate the message to the donor


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Offer an Attractive Package

to the Board• Offer Ten VPLs if the charity pays you

$5,000 and refers donors to you. • Assume that donors will pay you to

upgrade the VPLs into whole plans.• Assume that the ten plans will generate

current gifts of more than the $25,000 that you guarantee to the charity.

• Assume that the ten plans will generate deferred gifts of at least one-fourth the net worth of the ten donors; e.g. 25% of $100 million = $25 million.


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Target the Over-taxed Donors

• Business owners• Individuals selling appreciated assets• Families with estates larger than $2

million• Athletes, lottery winners, executives,

and others with high income• Singles or wealthy people with no heirs


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Target the Charitably-inclined

• Board members• Major donors• Former board

members• Prospective donors


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Communicate the Message to Donors

• Private Viewings with board members

• Presentations to donors during charity events

• One-on-one meetings scheduled by the development officers

• Wealth Counseling retreats


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Attorneys

Listen to an additional audio clip on slide 43


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Who Are Attorneys?

• 1 out of every 300 Americans• 75% of lawyers would choose

another career.• Many lawyers are eager to find a

career path that lets them move from Success to Significance


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Why Do Attorneys Question Everything and Act Superior?

• We were trained that way in law school.

• We are trained to question every fact in a story or every word in a document.

• We are part of a system based on adversarial relationships.

• The job has “winners” and “losers,” making a “team” of advisers a difficult change.


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What Do Attorneys Know about Advanced Estate Planning?

• Most attorneys stick with areas they know, but most attorneys think they can do estate planning.

• Even experienced estate planners get into habits and ignore the more complex, confusing or risky advanced planning techniques.

• Attorneys do not assume the responsibility of “updating” a client’s estate plan. That is up to the client.


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Can You Find a Way to Work with Lawyers?

• What share of the case compensation will the attorney want?

• How much control will the attorney want?

• Million Voorhees LLP is unique! We have user-friendly ways to work with financial advisers to plan sophisticated cases.


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Why Aren’t Attorneys Good Referrers?

• Often they are the last professional picked, leaving no referral to be made.

• Often the attorney gets his referrals from the same profession.

• Liability issues based on historical ideas of “control.”

• No longer protected by the “attorney brotherhood.”


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What Will The Attorney Think When I Ask For All Estate

Planning Documents?

• They will hate your request and be stressed about it.– Will they find errors?– Will my reputation be harmed?– Could I lose this client?– They might question your motives.– Initial Reaction – Nip it in the bud.

• They will need to comply with Model Rule 1.6. Client consent needed.


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What Will The Attorney Think When You Are Presenting Your

Proposal With The Client?

• Need to protect the prior estate plan’s perceived quality

• Need to keep the client• Need to appear knowledgeable

– Question everything– Shoot your proposal down– Look for revenue generation

opportunities


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Keep The Attorney’s Needs In Mind And You Will Have Far Greater Chances Of Success:

• The situation has them on the defensive.• They need to save face with the client.• They need to show their professional

value (past, present and future) to the client.


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How Can You Make The Attorney Work With You

Rather Than Against You?

• Ease their fears as soon as you can.

• Prepare your client.


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Best Sources of Referrals• CPAs• Bank Trust Officers• Charitable Development Officers• Attorneys• Insurance agents• M&A brokers• Real Estate brokers


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Best Practices CD - Session E Resources

81 Charity seminar invitation

82 Contract for use with charity

83 Donor Letter Charity

85 Charity - Post-Meeting Letter 1

86Charity letter to replicate successes experienced

elsewhere

87 Charity Post-Meeting Letter 2

88 Charity Post-Meeting Letter 3

90 Prospecting Letter - Bank

98Prospecting Letter - Network Member to Referral

Source

99 Prospecting Letter - Post CPA meeting


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102 Prospecting Letter- Low Planning Costs

104 Prospecting Letter - Blueprinting Process

106 Prospecting Letter - Zero Tax Plan

108 Prospecting Letter - Investment Mgt

115 Best Practices Session E

136 Brochure License - Fund Dreams

155 Seminar Room Layout Diagram

160 Rainmaker Meeting Agenda

161 Splitting Cases with Rainmakers

170 Rainmaker Graphics


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180 Workshop Hosting Benefits

193 Letter to charity board to promote an alliance

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Financial Checkup Prospecting Letter- Longer Version

208 Prudent Investor Act Fiduciary Response. - Letter

211 Life Insurance Review Letter

368 The 12 Roles of the Planning Team

809 FAQs- Training

810 FAQs- Service Bureau Case Planning

811 FAQs - Marketing

813 FAQs- VFOS Clients

814 FAQs - Allied Advisers

853 Outline of slides to use with charities


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Best Practices Training

Session AAdapting to Planning Trends and Presenting Valuable Deliverables to Clients

Session B Charging Fees and Using Appropriate Engagement Letters

Session CDelegating Technical Work to a Virtual Back Office and Advanced Sales Department

Session DDeveloping the Value Proposition Letter after a Discovery Session, and Preparing the Family Wealth Statement During/After a Client Retreat

Session EDeveloping Relationships With CPAs, Bankers, Lawyers, Charitable Development Officers, and Other Referral Sources

Session FPresenting Your Materials During Client Seminars, Training Workshops, and One-On-One Presentations

Session GComplying with IRS, SEC, NASD, AICPA, ABA, FPA, and Other Relevant Guidelines

Session HFocusing on Your Unique Talents by Delegating “Administrivia” to a Relationship Manager

Session IConducting a Strategy Session to Integrate Tools Needed to Achieve All of Your Clients' Wealth Optimization Goals

Session JTracking cases and portfolios with web-based project management and CRM systems


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Phone: 800-447-7090 or 949-453-2900

Fax: 949-453-2916 or 866-447-7090

Email: [email protected]

Brown & StrezaFamily Office ServicesTim Voorhees, JD, MBA

© tim voorhees, jd, mba, 1996-2008 1 summary of best practices session e updated february 10, 2008...

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