Brad Johnson's Blog - Sharing Sales Ideas, Videos, Marketing Strategies, & More.

6 Steps for Utilizing Your Best "Resource" for 2012's Marketing Efforts

2011-12-13T20:13:00.017-06:00

As we near the end of 2011, most of the advisors I work with are not only running annual client reviews, but also reviewing their business structure, revenue stream, and marketing plans to work on production goals for 2012. The best way to ensure you exceed your goals for 2012 is to proactively go into next year with a solid marketing plan based on results gathered from 2011, analysis of these results (good and bad), and implementation of the best results or opportunities for the new year. In summary, it comes down to running your business like a business.

Read on if you'd like to find out how one of my advisors did just this and

leveraged an investment of $2700 into a marketing strategy that generated an

additional $100k of commissionable sales in 2011...

Creating a successful business structure can be defined by allocating resources to the most profitable marketing channels according to your Return On Investment. Based on many of the conversations I've had recently, many of my top advisors' greatest marketing resource is actually their existing client base. However, many of their year-end reviews have revealed that the bulk of their marketing money was spent on seminars for new clients instead of creating a system that allows their “biggest fans” to introduce them to their friends, family, and colleagues.

The statistics below from a study of 750 high net-worth individuals with at least $500K of investable assets tell much of the story…

So the question is, how can I capitalize on this
as an advisor going into 2012???

It all starts with laying out 2012's calendar to include monthly social events for your clients...

One more time for effect - SOCIAL EVENTS, NOT SEMINARS OR EDUCATIONAL EVENTS! The whole idea is creating an atmosphere where your clients feel extremely comfortable bringing a friend or colleague along with them. This means no fear of them getting backed into a corner to listen to a "sales pitch".

One of my advisors tracked the results of his monthly events in 2011 very closely (his happened to be a monthly wine tasting, but others have included dessert tastings, cooking classes, and gardening events to name a few) and the results were UNBELIEVABLE!!!

Total Budget of $2700 that Generated Revenue of Over $100,000 in additional commissions
If you are open to this sort of ROI in your business (yes, that's sarcasm!), I've outlined the six implementation steps to make it happen below:

1. PLAN - Setup & layout your calendar with a local venue creating something your clients can look forward to every month, have a 12 month calendar so your clients can plan ahead to attend.

2. CREATE EXCITEMENT - Call out to “A+” and "Center of Influence" clients announcing your new plan for 2012 and how you want to use this as a great way to stay more closely connected with them and let them know they are encouraged (see offer below for scripted conversation) to bring their friends/colleagues along.

3. MARKET THE EVENT - Send email invitations monthly through Constant Contact, Mail Chimp, etc. with information to RSVP clients/guests for the event. Mailing client invitations is an option as well, although more expensive. Another idea I love is creating a "Save the Date" refrigerator magnet with dates for the year's upcoming events.

4. CAPTURE GUEST'S INFO - Turn prospects into appointments by holding a giveaway at the end of the event by gathering Feedback Cards (filled out with clients/referrals contact info) and holding a drawing. You'll find your clients do most of the "selling" for you as most of the referral process comes down to giving your clients a reason (and forum) to brag about you.

5. TRACK YOUR RESULTS - Make sure you are following up on referrals from the events and tracking how many you are bringing on as clients allowing your office to refine the process as you go along.

6. RECAP THE EVENT - Send out a follow up email after each event. It's a good idea to include pictures from the last event of all of the fun everyone had and an invitation to next month’s event. Repeat attendance is encouraged!

ADDED BONUS - IF YOU LIKE THIS IDEA, EMAIL MY TEAM AT INFO@BRADJOHNSON.BIZ TO REQUEST A GREAT SCRIPT WALKING THROUGH HOW TO POSITION THESE MONTHLY EVENTS FOR REFERRALS WHEN HOLDING ANNUAL REVIEWS WITH YOUR EXISTING CLIENTS!!!!

Thanks for reading.

America's Debt, Simplified

2011-08-16T17:35:00.010-05:00

Here's a great example of how to "Simplify" the current US Debt situation for your clients and prospects, make it a real life scenario...

America's Debt, Simplified

The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is, so we created a breakdown of federal spending in simple terms. Let's put the 2011 federal budget into perspective:

• U.S. income: $2,170,000,000,000

• Federal budget: $3,820,000,000,000

• New debt: $ 1,650,000,000,000

• National debt: $14,271,000,000,000

• Recent budget cut: $ 38,500,000,000 (about 1 percent of the budget)

It helps to think about these numbers in terms that we can relate to. Let's remove eight zeros from these numbers and pretend this is the household budget for the fictitious Jones family.

• Total annual income for the Jones family: $21,700

• Amount of money the Jones family spent: $38,200

• Amount of new debt added to the credit card: $16,500

• Outstanding balance on the credit card: $142,710

• Amount cut from the budget: $385

So in effect last month Congress, or in this example the Jones family, sat down at the kitchen table and agreed to cut $385 from its annual budget. What family would cut $385 of spending in order to solve $16,500 in deficit spending?

It is a start, although hardly a solution.

Now after years of this, the Jones family has $142,710 of debt on its credit card (which is the equivalent of the national debt).

You would think the Jones family would recognize and address this situation, but it does not. Neither does Congress. The root of the debt problem is that the voters typically do not send people to Congress to save money. They are sent there to bring home the bacon to their own home state.

To effect budget change, we need to change the job description and give Congress new marching orders. It is awfully hard (but not impossible) to reverse course and tell the government to stop borrowing money from our children and spending it now.

In effect, what we have is a reverse mortgage on the country. The problem is that the voters have become addicted to the money. Moreover, the American voters are still in the denial stage, and do not want to face the possibility of going into rehab.

The Journey - One of Advisors Excel's Secrets to Growing Your Business

2011-08-08T16:32:00.014-05:00

Click Below to Register for October 5-7th in Nashville!

Constructing a "Fiscal House" to Help Your Prospects Understand Your Financial Plans

2011-05-24T10:06:00.018-05:00

This week I want to share with you a simple example one of our advisors uses to walk through his income planning strategy with high net-worth clients. He shared that as his average client surpassed $1 Million in net-worth, he realized the simpler he kept his explanation, the more his prospects understood (and more importantly) implemented his planning philosophy. It's a very simple story where he compares his income plan to that of a house and how it's structurally built. He calls it his "Fiscal House"...

1. He starts with the below conversation with the client. (As he draws out a foundation on a white board)

"So, if you take $500,000 and went to a builder and told them you want to put 450,000 into the roof, what would they tell you? They would tell you you're crazy, right? So what we always do when building a financial plan is we start with the foundation. Have you watched the news lately? It seems like every day there is a new natural disaster, most recently the tornado in Joplin, MO or a little while back the earthquake and tsunami that followed in Japan. What is the one thing you notice in all of the before and after pictures??? The one thing that is still remaining after all of that massive destruction that you always saw stood up and withheld these violent storms and changes? It is always the foundation, right? That's how you can tell where the houses and buildings once stood. Well, that's the same way we build a financial plan. We start with the foundation, that way it can withstand anything like the market downturn we faced as recently as 2008 when the market dropped by almost 50%. I call this a "fiscal tsunami" and you want to make sure your financial plan is able to withstand anything the market might be able to do, like what we saw back in 2008. No matter what happens, you have a solid base. Before we do anything else, we start here. You have no reason to decorate the walls until you've started with the foundation, and there's a formula that tells us how much needs to go into this." (Rule of 100 Explanation)

2. Next we build the walls. (As he draws the walls out on the white board)

"They need to be strong and support the roof. You've all heard the stories of the houses built with Chinese drywall and all of the class action lawsuits that situation brought about. When constructing our walls, we want to make them out of sturdy material that won't crumble, so what I like to use here are nice, high-dividend paying stocks. Sturdy blue chips companies that have been around a long time, or perhaps REITs that produce a lot of income and pay nice, strong returns."

3. Lastly, we construct the roof. (As he draws a roof on the house on the white board)

"Now, if you think about the roof on your house, what happened the last time a hailstorm or big wind storm happened? What was the very first thing that was damaged? It's always going to be your roof, right? You're not going to be up on your roof shielding it with an umbrella are you? It's no different in our financial plan, one of the things we know going in is that the roof is subject to being the first thing that takes damage whenever there's a storm, there's nothing you can do to control it. So, this is where you're going to have your high-risk, high reward assets. They'll be the first to take a hit, but at the same time, they'll be the first to have bigger financial gains in an up market. These are the riskiest holdings you have, because it's exposed to things we can't control, and you need to be ok with that going in."

"Terrorist attacks. Nothing you can do."

"Nuclear meltdown in Japan, nothing you can do."

"Greedy bankers on Wall Street, nothing you can do."

That's it! Seems too simple to be true, I know. As an added bonus to those reading/watching, there is one other piece of the puzzle that I'll make available to you today. There is a brief conversation following this discussion that the advisor has to lead into the next appointment to prepare the client for the process of moving the funds away from the other advisor. He does this before presenting any illustrations or products to the prospect and essentially eliminates the shopping process that many advisors deal with when competing against that advisor "down the street".

Leave a comment below with your feedback/ideas/successes/struggles/questions and I'll be sure to get you over a copy for those that do. Thanks for reading!

Creating "Trust" with Prospective Clients by Utilizing the ACE Principle

2011-03-10T08:36:00.020-06:00

Today I want to share with you a quick idea directly from the book "Creating Trust", co-authored by Matt Zagula & Dan Kennedy. It deals with the concept of the ACE Principle and how to create it with prospects:

Authority
Celebrity
Exclusivity

So when you think about this concept, the example I love to use is Suze Orman. Love her or hate her, she has done a masterful job of creating Authority, Celebrity, and Exclusivity in her market.

Imagine for a second - what would happen if Suze Orman opened up a financial services firm a block down the street from you??? How would that affect your market???

The last time I listened to Dan Kennedy present, he made a VERY POWERFUL statement - "Consumers buy the WHO, not the WHAT."

So as a financial advisor, you can be the absolute best, most qualified estate planner, retirement income specialist, you name it (THE WHAT)... all of that is great. But unfortunately, to prospective clients you are just a face in the crowd of financial advisors they've talked to that are telling them the same thing. They are buying from the advisor that wrote the book, spoke on TV, they listened to on the radio (THE ADVISORS THAT CREATED THE WHO).

To master this concept, all of your marketing, everything you're doing needs to be centered around the idea of creating or manufacturing ACE, which more importantly leads to TRUST. Here's a quick example that will cost you NOTHING and will get you started down the path of manufacturing Exclusivity in your practice. It comes directly from my own experience of working with Greg, one of the advisors I consult, who was producing $3 Million of annuity business annually and has transformed himself into an advisor that has submitted $4.8 Million YTD!

He made 2 simple changes in his meeting process:

No meetings last longer than 1 hour (Not finished? You need to book a follow up with his assistant to get you in as soon as Greg's schedule allows. If a client can meet with you for 3 hours, how important can your time be, would Suze Orman meet for 3 hours?)
His assistant knocks on the door with a "10 Minute Warning", letting both Greg and the prospect know that his next appointment will be arriving shortly and they need to be wrapping things up (this happens regardless of whether another appointment is booked or not)

This has created a couple of positive changes in Greg's business, his clients and prospects maximize their use of his time and he has now positioned himself as EXTREMELY EXCLUSIVE. It's amazing the transformation you will see with clients opening up in the last 10 minutes of the appointment when they know that it is their last 10 minutes!

I'll leave you with this thought. If Suze Orman puts a sticky note on the front door of her new firm she just opened a block away that says, "Accepting New Clients," how long until she has captured $10 Million, $50 Million, or $100 Million in assets???

The answer: "Not Long"

This is the power of creating Authority, Celebrity, and Exclusivity in your business.

Please share your success stories or challenges below on implementing the ACE Principle in your practice. For those that comment, I'll be sure to get you out a free copy of the book "Creating Trust"!

Are YOU Capitalizing on 2011's $3 TRILLION Opportunity?

2011-02-14T09:13:00.025-06:00

60 Minutes Clip on Undisclosed 401k Fees

For those of you not yet aware, the Department of Labor has created a $3 Trillion Opportunity this year for everyone in the financial services industry. As of July, 2011 - all 401k plans will be required to start DISCLOSING all of those fees that have been UNDISCLOSED since 401ks were created. If you know anything about 401k plans, you know it's not going to be pretty. Here's a timeline to help you prepare...

July 16, 2011 - Disclosure to Plan Sponsors (Employers) Required
October 31, 2011 - Disclosure to Plan Participants (Employees) Required
First Quarter of 2012 - All Employer and Employee Statements will Include both Disclosed & Undisclosed Fees

So the better question - HOW CAN YOU CAPITALIZE

ON THIS MASSIVE OPPORTUNITY???

The first tool I'd like to share with you is what I consider one of the coolest (and even better) FREE financial services tools in the industry - BrightScope. Think of it as Morningstar for the 401k industry - it allows you to search for any 401k plan in the United States and stack it up against the best options in the industry by comparing Internal Fees, Investment Options, and Company Generosity among other things. Even better, it tells you how many additional years that client will need to work and their lost retirement savings by not being in the "best" plan. Full form 5500 data for each plan as well, AMAZING TOOL. Here's a screenshot below.

(Looks like Best Buy's Plan Needs Some Help)

Another tool that can be a huge help is actually knowing which companies allow In-service Distributions for those clients that are stuck in these inferior 401k plans. Having an extensive list of these companies can be a huge benefit as it's hard to help someone that can't move their account! If you'd like a copy of this list - simply email me below for 200 of the largest companies in the US that allow In-service Distributions.

Lastly, wouldn't it be nice to have a relationship that did all of the analysis for you? We thought so too - so we've partnered with a group that will do a comparative analysis for you. I've included a link to a sample analysis below that breaks down each and every fee to show the total cost that is associated with your prospect's current 401k plan and gives them an opportunity to improve their situation.

Sample of 401k Fee Analysis

I'd love to hear if any of you have any other ideas about marketing in the 401k market place, please leave comments below with any other tools or concepts that have worked for you!

How to Close Your Top Prospects by Leveraging Articles

2011-02-03T17:28:00.011-06:00

I wanted to announce that I'm officially rolling out an "Article Library" for all of my advisors! Be sure to watch the video below to hear an idea from one of our Top Advisors in OH named Bill and how he utilizes the library to help land his Top Prospects...

Mike Reese's Three Worlds Discussion

2010-11-03T08:32:00.019-05:00

Update: Scroll Down Below "Three Worlds" Diagram for Audio of Discussion

Today I want to share with you a short discussion that almost ALL of my biggest producing advisors use during their appointment process (in fact, it’s so popular, 2 of our advisors just featured on Senior Market Advisor’s cover, use it regularly!)

(Click Picture for Link to Senior Market Advisor Article)

Mike Reese, one of our industry’s top producers, has refined this discussion over the years as a way to both educate his prospects on the pros and cons of different types of investments and to position Fixed Indexed Annuities as a hybrid account for safety & growth. This is the exact strategy he uses to average over $700,000 per annuity sale. In the recording below, Mike further discusses how he positions annuities as a part of a client's portfolio in order to meet their needs and actually gets his clients to tell him how much they want to put into FIAs! The best part about this sales process??? The prospective client is fully aware of both the benefits and drawbacks of each vehicle.

I've posted the diagram he uses below along with a recording of the discussion...

(Click Picture for Full Size Diagram)

"Three Worlds" Discussion Audio

If you like the snippet of Mike's sales process above, we are currently hosting an invite only 5 Part Webinar Series with Mike walking through his sales process and business model. Also, for those of you looking to go into 2011 with some sales momentum, we will be hosting our last training event of the year in December with Mike. This will include 2 days of Mike talking about everything he does in his business.

If you'd like any additional information, simply click the email icon and let me know which topics you are interested in listed below.

How to register for Mike's 5 Part Webinar Series
How to be a part of Mike's upcoming 2 Day Training Event
Request a CD recording of the "Three Worlds" Discussion via mail
Request a PowerPoint of the "Three Worlds" Diagram above

Thanks for reading (listening in)! I'd love to hear your thoughts and feedback below on the "Three Worlds" Discussion and if any of you have developed a similar sales process or have something that could be added to make it more effective. I've made it easier to comment as you can now sign in with your Facebook or Twitter accounts!

60 Minutes Examines High-Frequency Trading on Wall Street

2010-10-11T09:37:00.004-05:00

This segment aired on 60 Minutes last night and discusses High-Frequency Trading and how the Flash Crash of May 6, 2010 (my blogpost from that day) can be linked directly to this now common practice on Wall Street. Per the information on the video, high-frequency trading now accounts for approximately 70% of the trades made on Wall Street on a daily basis and from the events of May 6, can dramatically affect the volatility of the market, as algorithms are the ones controlling the trades, not humans.

Here's the full video below...

CBS Video: Wall Street Speed Traders -- Aired Oct. 10, 2010

Allianz CEO Gary Bhojwani Explains Power of Annuities on CNBC's Squawk Box

2010-09-14T17:21:00.010-05:00

Great explanation on the strength of annuities from Allianz CEO Gary Bhojwani in the video below - also included a great article (An Annuity by Any Other Name...) referencing the study that found if an "annuity" was simply named something else, more people would take advantage of them for income guarantees throughout retirement...

5 Keys to Success for Financial Advisors with Radio Shows

2010-09-08T08:01:00.033-05:00

As I see more and more of the industry's most successful financial advisors move into radio, often times many of them simply jump headfirst (even with the substantial up-front cost) into this new market without thinking about different ways to best get a return out of their substantial investment of time and money. Although radio is a great medium to generate tons of CREDIBILITY, create new opportunities for REFERRALS, and reach a brand new multitude of PROSPECTS, many of these same advisors aren't utilizing some of the most powerful ways to leverage their radio shows.

Here are a few tips that I've picked up from the advisors I work with that are utilizing radio to drive more business through the doors, enjoy...

5 Keys to Success for Financial Advisors with Radio Shows

USE A CO-HOST - This is key to helping position you as the expert and not make you sound like a self-promoting salesman. Here's a quick example...

Flying Solo - "Last week was a ROUGH week in the markets, luckily I've protected all of my clients from a market downturn by utilizing annuities..."

Or try this version...

With a Co-Host - "This week we have a great show for you! I know we fielded a lot of calls last week Mr. Advisor from a number of our listeners that were concerned about all that's going on in the market out there. Mr. Advisor, I know you are sitting down with your clients on a daily basis to talk about their concerns and the different tools to help protect them from a market downturn. Since this seems to be a hot topic, can you share with us some of these planning strategies?"

Mr. Advisor - "Well Mr. Co-Host, thanks for the question. There are a lot of tools out there, but one of the best we've found to help eliminate the down side of the market are annuities..."
HAVE A HOOK OR OFFER - Although I'm sure there is an advisor out there that does their radio show just for fun, most of us are in the business of making money! The key to generating traffic through the front door is to make sure you are consistently offering something of value on your show that listeners can request. Whether that's a free proposal, a recent study, or maybe a free book giveaway - it is imperative that you are asking your listeners to respond for something on a consistent basis to generate leads and calls!
MAKE IT EASY TO RESPOND - Give your listeners multiple avenues to easily contact you (via phone, website, etc.) and make sure you continue to mention them throughout the radio show. Also, in order to make it easy to commit websites/phone numbers to memory, many advisors will create specific phone numbers or websites that are simple to remember. Here are a couple of examples, let me know which one is easier to remember while you are driving down the road in your car and listening to the radio...

Example #1 - Call me at 555-482-7281 or visit my website at www.financial-advisors-network.net

Example #2 - Call me at 555-4ADVICE or visit my website at www.4advice.com

Just a couple that I quickly made up, but I know which one I'd pick. Also, for those of you that are a little more technologically advanced, many advisors will actually create specific landing pages (websites) for each of the offers on the show in order to eliminate the distractions of other links or menu items that may be found on their company webpage.

Here's an example of a great landing page from Netflix, their goal is to get you to sign up for a 1 month free trial because they know if you have their service for a month you are hooked...

As a Financial Advisor, why are you not making it this easy to request all of the materials that you offer on your radio show? Or sign up for your email newsletter? Or sign up to receive updates when you post to your blog?

MAKE IT EASY TO LISTEN (NOW AND LATER) - Not everyone is going to be able to tune in for every show, so some of the most successful advisors make it very easy for clients and prospects to "find" the shows they've missed. Make sure you have your archived shows available on your website, uploaded to iTunes, or even available on CDs for those that want to catch shows they've missed. This is a great way to make sure that your past radio shows never stop "working for you!"

Also, don't forget to let your prospects know that you have a radio show! Include the radio station and your website (with the archived radio shows) on all of your company literature, direct mail pieces, email newsletters, or anything else you distribute!
KEEP IT SIMPLE - As far as content is concerned, make sure you CONSTANTLY repeat your theme, topic, or hook within the show often - many times you have a short window to catch a passing listener's interest (studies shows that average listeners will tune in for 7 minutes when flipping through stations). It's great to have a story board or theme that lasts for 60 minutes, but keep in mind, if you have listeners tuning in for the last 15 minutes - you are losing potential clients if they can't get up to speed quickly or if your offer/hook has already passed!

For those of you currently on the radio...

Email Me for this Idea
"How to Set 5 Appointments on Your Next Show"

As an added bonus, I've shared a few statistics from a recent study on radio demographics below...

Powerful Statistics on Radio's Reach

90% of adults are exposed to some form of audio media on a daily basis, with broadcast radio having by far the largest share of listening time
Broadcast radio is the dominant form of audio media at home, work, and in the car
Car audio listening time is primarily broadcast radio listening time, with broadcast radio comprising nearly three-fourths (74.2%) of all audio time in the car
Audio media exposure has the highest reach among those with higher levels of education and income

Thanks for reading as always and I hope that you are able to put this information to use on your own radio shows!

ALSO DON'T FORGET TO PLEASE LEAVE COMMENTS WITH YOUR FEEDBACK AND IDEAS BELOW, THEY ARE ALWAYS APPRECIATED!

Social Media for YOUR BUSINESS - Not a Choice of If, But When

2010-08-21T15:33:00.011-05:00

Ok, so my last post focused on some statistics that emphasize why it is so important to embrace change and utilize the internet and social media when doing business in the financial services industry. After all, the true power of social media is easily being able to connect with clients and prospects in a way that was never possible before.

So I found this video through a twitter or Facebook link, I really don't remember as that's the power of the internet - potential customers find their way to your website if you have a common interest or goal. If this video doesn't immediately make you want to substantially increase your presence in social media, you may be a lost cause!

Here's a challenge to you, leave your answer and reasoning in the comment section below, I'd love to hear (read) your thoughts...

Name a decision making process or commitment that requires a larger amount of trust than making the decision to put your money with a financial advisor????

7 Reasons Why Your Business Needs to Change with the Times

2010-08-09T16:59:00.017-05:00

I came across an amazing statistic the other day - Did you know that Boomers are now spending more time online than they do watching TV? That is both an amazing and scary statistic if you are still running your business the same way you were 10 years ago…

Here are 7 reasons why you should reconsider how you connect with your clients and prospects (read to the bottom for links to both supporting studies):

Boomers now spend more free time online (12.9 hrs per week on average) than they do watching traditional TV (11.8 hrs per week on average)

By a five-to-one margin Boomers are watching less traditional television than they did a year ago. Among this group, 62% say it’s because they’re not as interested in what's on TV these days, and another 26% say they’re spending more time surfing the web
Google Searches have experienced tremendous growth when comparing statistics from 2000 (10 Million) vs. 2010 (2 Billion) – THAT IS 2000% GROWTH IN 10 YEARS!
Average Time Consumers Spend Online follows closely behind when comparing 2000 (2.7 Hrs/Week) vs. 2010 (18 Hrs/Week) - 667% GROWTH!
Boomer professionals are spending more time online with social networking sites – where 51% say they currently maintain one or more profiles
Nearly three-in-five (57%) of these Boomers report they use the networking site LinkedIn, while another (55%) have a Facebook profile – the site normally thought to be most popular among teenagers

Here’s the SCARY statistic for those of you stuck in your traditional forms of marketing...Compare the number of Daily Newspapers in 2000 (1,480) VS. 2010 (1,302) – THAT’S A 12% DROP IN ONE OF THE OLDEST & MOST TRADITIONAL MARKETING CHANNELS SINCE ADVERTISING HAS BEEN IN EXISTENCE!

Here’s my personal challenge to you…Google yourself or the name of your Financial Services firm.

What do you see? Where do you rank? Because that’s the same thing your prospects are seeing when they consider doing business with you...

If you aren’t happy with the story that your online presence is telling your prospects about your business, we can help. Here are a few examples from the 100+ custom websites we’ve done for our advisors:

Enjoy the rest of your week and give me a call if you’d like to speak about how to create a 100% Customized Web Presence and make sure the first impression you are making with your clients and prospects is the right one (You don't get a 2nd chance at a 1st impression)!

Link to Boomer Study

Link to 2000 vs. 2010 Web Statistics

Steinbrenner's Final Business Move...

2010-07-30T09:14:00.012-05:00

George Steinbrenner, the former owner of the New York Yankees, was always known for being a shrewd business man; however, his final business move may have been his finest. By dying in 2010 and therefore avoiding the Federal Estate Tax, Steinbrenner is estimated to have saved his family from paying an additional $500-600 Million in Estate Taxes, which were repealed in 2010 for the first time since 1916 when they were enacted.

"If you're super-wealthy, it's a good year to die," said Jack Nuckolls, an attorney and estate planner with the accounting firm BDO Seidman. "It really is."

The death of the 80-year-old Steinbrenner, who had been in poor health for years, highlights a quirky tax situation that has drawn much scrutiny among the moneyed but little on Main Street. Only those with estates valued at more than $3.5 million had to pay under the old law.

MSNBC Article

WSJ Article

Washington Post Article

NBC New York Article

This is the second case of a highly publicized individual "timing" their death perfectly as far as Estate Taxes are concerned. Dan L. Duncan, a Billionaire Pipeline Tycoon from Texas, who was worth an estimated $9 Billion, passed away earlier this year. Ranking as the 74th Wealthiest Man in the world by Forbes, it is estimated he saved his heirs (and cost America's Tax Collection Funds) billions!

The bonanza in tax savings for Mr. Duncan’s descendants is sure to be unsettling to those who have paid estate taxes on more modest wealth — until Jan. 1 of this year, it applied to any estate valued at more than $3.5 million, taxing only the money exceeding that threshold, or $7 million for a couple’s estate.
Although the tax affects only about 5,500 estates a year, it is such an incendiary issue that when Congress unexpectedly let it lapse at the end of 2009, financial advisers warned that it might play a macabre factor in the end-of-life decisions being weighed by heirs of elderly Americans. Some estate lawyers worried that tax considerations might prompt their clients to keep an ill relative on life support through the end of 2009 to get the favorable treatment — or worse, resist life-prolonging measures to hasten a relative’s demise before the end of 2010.
The one-year lapse in the estate tax was signed into law by President George W. Bush in 2001, an accounting quirk in his package of tax cuts. Although Democrats pledged to close that gap and reinstate a tax for 2010 when they took control of Congress, they failed to reach an agreement last December. The Senate Finance Committee is now trying to forge a compromise that would reinstate the tax, but even if that effort succeeds, it is unclear whether any changes might be retroactive and applied to those who have died so far in 2010.

NY Times Article

Who Owns America's Debt?

2010-07-26T17:15:00.008-05:00

Here are some interesting statistics and a great "infographic" that I found at Mint.com that break down our national debt by where it's held both domestically and also internationally. No surprise that China is our #1 Debt holder, here's a list of the rest. These statistics were pulled directly from the Treasury Bulletin that was issued in June. This is a great tool to use in workshops or client education events to help spread public awareness of the state of our country's finances. Don't forget about another great tool as well, the US Debt Clock...

Click Image to Enlarge

Budget Plannerfrom Mint.com

On the lighter side...

2010-07-15T10:42:00.002-05:00

Ran across this today, thought it was funny enough to share. Enjoy your Thursday!

UPDATE - Appeals Court Vacates Rule 151A

2010-07-13T08:54:00.007-05:00

Wanted to post this update first thing this morning when my Google Alert popped it up...looks like things are moving in the right direction on 151A! Stay tuned as I'll keep posting as news develops! Few excerpts below and a link to the full article.

P.S. You might notice the blog/website has gotten a "face lift", stay tuned for more changes including an article library, more videos of sales ideas, more ways to interact and network and more!

A 3-judge panel at the D.C. Circuit Court of Appeals has granted the plaintiffs' request for a rehearing in American Equity vs. SEC because the panel agrees with the plaintiffs' view that the SEC "failed properly to consider the effect of the rule upon efficiency, competition, and capital formation."
"The SEC argues it is likely to reissue Rule 151A but it also acknowledges it is in the midst of analyzing the effect of the rule upon the law of each state," the panel says. "As the petitioners point out, the commission cannot know whether that analysis will support reissuing Rule 151A until it has been completed."
The decision to grant the request for a rehearing revises a decision the same panel issued in July 2009. The said then that the SEC's efforts to analyze the effects of Rule 151A on securities market efficiency, competition and capital formation were “lacking.”
The panel says in its latest decision that the SEC “cannot justify the adoption of a particular rule based solely on the assertion that the existence of a rule provides greater clarity to an area that remained unclear in the absence of any rule.”
Eric Marhoun, general counsel of Old Mutual Insurance Company, Baltimore, one of the leaders of efforts to fight Rule 151A, welcomed the appeals court ruling.
“Most likely this means that the SEC will drop efforts to regulate this product,” Marhoun says. "We are very pleased by the court’s action because it wipes the slate clean and clarifies that Rule 151A is null and void. This was a big victory both for agents and for consumers who have come to rely on the guarantees provided by FIAs, but we plan to stay vigilant until we're sure the threat has passed."
Because the court vacated Rule 151A, the SEC must completely start over. The SEC can now rethink the rule and may simply drop it, Bartz says.

Full Article

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2010-07-07T10:41:00.023-05:00

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Article - 8 Problems That Could Trigger a Double-Dip Recession - US News & World Report

2010-07-05T13:41:00.008-05:00

I hope that everyone was able to enjoy a safe and happy 4th of July weekend with friends and family! While back home over the holidays, I did find a little bit of time to do some reading and ran across this article out of US News & World Report that talks about a number of factors that are affecting our economic recovery and the things that need to go right in order to continue towards a stable economy. I've posted a few excerpts and a link to the full article...

With stock prices spiraling downward and treasury yields tanking, the market has been sending a clear message this week: The fragile economic recovery is in trouble. But just how bad is the outlook? In the aftermath of a bleak second quarter, experts are still divided about the likelihood of a double-dip recession. What's becoming clearer with each new report, though, is that the economy--even if it doesn't double dip--is steadily losing ground.

The economic souring is, of course, being spearheaded by a familiar cast of characters: An anemic labor market, a skeptical consumer base, a weak housing market, and a global debt crisis that threatens to overwhelm national governments, just to name a few. Further deterioration in even one of these arenas could be enough to trigger a double-dip, which is loosely defined as a period during which a recovery is interrupted by economic contraction, usually in the form of negative GDP growth.

For investors, a double-dip, if it materializes, would be a throwback to 2008, with a floundering economy punishing stock returns. Jeff Tjornehoj, Lipper's research manager for the United States and Canada, says the Dow Jones industrial average could touch 9,000 by the close of 2010. "Is it reasonable to expect it? I think it's reasonable to put some odds on it," he says.

With that in mind, U.S. News has examined eight phenomena which, given the right conditions, could send the economy--and the financial markets--reeling.
Unemployment. In the aftermath of a recession that wiped out 8 million jobs, the lackluster labor market has perhaps been the biggest thorn in the side of a sustainable economic recovery.
Housing. In early 2009, President Obama introduced a first-time home buyer tax credit of $8,000 that was later extended to any qualified buyers who signed a sales contract by April 30 of this year. That tax credit, like other stimulus programs, has expired, and it's left many experts wondering whether or not the upsurge in home buying will continue.
Expiration of stimulus. One of Obama's first acts as president was to authorize a massive stimulus package that cost $787 billion. It included a number of provisions that were intended to help jumpstart the economy. Some economists are concerned that the stimulus plan is the only thing driving GDP growth in the United States.
Spending cuts. At last week's G-20 summit, countries from around the world pledged to cut their deficits over time. Everyone agrees that it's a noble goal, but experts are torn over when it's appropriate to begin cutting spending. Many countries in Europe, most notably Greece and Spain, have already begun instituting austerity programs (through a combination of spending cuts and tax hikes) because of their enormous budget deficits.
Tax hikes. Most experts say it's not a question of whether taxes will go up in the United States, it's more a question of when. The Bush tax cuts will expire at the end of the year. If they lapse, taxes will go up. Research has shown that there is a 3 to 1 ratio that can be applied to how tax hikes affect GDP growth, according to Arnott.
Consumer confidence. A recent report by the Conference Board shows that consumer confidence is plummeting. In June, the group's Consumer Confidence Index dropped by nearly 10 points, its second-biggest one-month decrease in a year.
Consumer spending. Poor consumer sentiment generally translates into stagnant spending levels. Recent data from the Commerce Department suggests that Americans are dialing back their spending and tucking more money away in savings accounts.
European debt crisis. For the time being, the European Union faces the most imminent sovereign debt threat. Spain, Portugal, and Greece have all seen their debt downgraded in recent months. Greek debt is now valued at "junk" status.

Full Article

Video - Bill Smith: 80/80 Rule and Seminar Appointment Setting

2010-06-30T16:54:00.012-05:00

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2010-06-22T11:34:00.030-05:00

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Article - Is the Fed out of bullets? CNNMoney

2010-06-22T10:50:00.005-05:00

Interesting article off of CNN Money that I ran across today walking through the Fed's options that would remain should we enter into a "double-dip" recession. Also had an interesting video post from Nouriel Roubini on his opinion of the current market conditions and what policy makers can do...

From the article...

Longer-term rates set by the market, such as Treasury yields and mortgage rates, are also nearing historic lows. So the Fed can't make money much cheaper.
The Fed pumped trillions into the economy over the past two years through the purchases of non-traditional assets, such as long-term treasuries and mortgage-backed securities. Some look at the Fed's balance sheet and worry that it could be leading to asset bubbles and inflation down the road.
And despite the growing worries about the economy, Fed officials have to be careful not to raise too many alarms. Too much attention to problems that have arisen since the Fed's last meeting on May 9 could be more dangerous than ignoring the growing threats, according to experts.
Zandi said if the Fed were to hint it is even considering another round of asset purchases, "it would be counterproductive." "It'd spook the hell out of the market," he said.

Full Article

Video from Roubini...

Article - Fannie Mae, Freddie Mac to delist from NYSE - CNNMoney

2010-06-16T14:51:00.012-05:00

This is not news to be taken lightly...if we all think back to what caused the massive downturn in 2008, it was all put into motion by the pullback in the housing market and the mortgage defaults that came along with it. The markets spiraled downward from there, resulting in one of the worst market scenarios since the Great Depression.

Flash forward to today, where many borrowers have actually decided to "Strategically Default", essentially a carefully calculated, voluntarily mortgage default where the decision is made not to pour any more money into what that person considers a sunk cost. Read this Time Article for more on it, but essentially, this second form of mortgage default is continuing to drag down a housing market that is struggling to make a recovery.

Video on Strategic Defaults from CNN

So today's news is not something to glance over, when you think about how this all started in the first place...

Mortgage finance giants Fannie Mae and Freddie Mac were ordered by their federal regulator to no longer trade their shares on the New York Stock Exchange, the agency announced Wednesday. Both stocks plummeted on the news.

Fannie Mae and Freddie Mac remain a key source of funding for banks and other mortgage lenders. Without Fannie Mae and Freddie Mac, lending to home buyers would have completely dried up, home sales and new housing construction would have fallen even more sharply and homes would have lost even more value.
But while the money given to Fannie Mae and Freddie Mac helped put a floor under the U.S. housing market and overall economy, the two firms have continued to hemorrhage money.
The two firms posted combined losses of $93.6 billion in 2009 and another $18.2 billion in the first quarter. The Obama administration had said it would lay out its plan for their future at the start of this year, but has yet to do so.

Full Article

Video - Mike Reese: Discusses 5 Secrets that Enabled him to Generate over $1 Million in Commissions in 2009

2010-06-03T16:56:00.012-05:00

We had one of our most highly attended webinars in our company's history yesterday with Mike Reese who trains at our IRA College. Mike discussed 5 Secrets that allowed him to generate over $1 Million in commissions in 2009!

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Video - Hidden 401k Fees...Crickets - 60 Minutes

2010-05-27T10:08:00.007-05:00

Powerful video that was shared with me today from a 60 Minutes show a while back on the hidden internal fees that are charged in 401ks and the battle by lobbyists against legislation to have them disclosed. Great material to be sharing with your clients/prospects at your next workshop or educational event.

SHOCKER - the 401k companies didn't want to disclose them!!!! I've posted a snippet below...

Classic Moment Alert - Listen for the "crickets chirping" at :40 when the interviewer asks the 401k lobbyist if the financial industry is opposed to disclosing the fees!

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