I jokingly told one of my clients that he is “not a bloody financial advisor jukebox!”

This was after my client was explaining that he was not feeling well over the past week while he was working on three large cases at the same time.

I asked them when they were going to get some free time and he remembered that he had the upcoming weekend free, except for a family reunion. He said that would be fun, until the subject of money would come up and that his family members would all want to talk about their investments that they have with him.

I suggested that he announce to their family in a jovial way, early on at the reunion that “this was a financial advice-free zone” at the family reunion, and that they all knew the office number and that he would be happy to talk about investments at the office.

Sign up for The Lead and get a new tip in your inbox every day! More tips:

• 3 more lead generation mistakes to avoid
• Advisors: Skype your way to success
• Create a social media policy for employees

Simon Reilly of Leading Advisor Inc. is a financial advisor coach, speaker and writer. Simon writes a daily blog and can be reached at www.leadingadvisor.com/blog.

Featured session will explore growing consumer, industry and political support for private pay funding solutions to help seniors pay for long term care

(August 1, 2011)— Life Care Funding Group will lead a panel discussion entitled Consumer Disclosure Law: The Changing Face of Long Term Care Funding on August 25th at the Annual Senior Market Advisor Expo in Las Vegas. The panel session will consist of Chris Orestis, CEO of Life Care Funding Group as host and moderator with panelists: Jayne Sallerson Executive Vice President of Emeritus Senior Living, Rep. Rob Damron (KY) immediate past president of the National Conference of Insurance Legislators (NCOIL), and David Kitaen, CLTC one of the first long term care insurance producers in the United States.

This will be an interactive session representing a cross section of views and backgrounds all focused on the same goal of how to provide funding for seniors in need of long term care services. The growing Boomer and senior population of this country is driving the need to fund more and more LTC costs. The timing could not be worse as the economic downturn and crushing costs to pay are limiting the availability of public monies for heavily pressured government programs such as Medicare and Medicaid.

“I have been selling LTCi for over 20 years, but I have never seen the situation in this country more desperate for solutions”, said David Kitaen, CLTC. “Having recently helped place someone in long term care by converting their life insurance policy they were about to lapse into an Assurance Benefit, I can speak first hand about the importance of these kind of win-win options for the consumer.”

Legislative action by governmental bodies such as the National Conference of Insurance Legislators (NCOIL) points to the fact that states and the federal government are facing serious budget deficits and runaway costs to keep up with 10,000 Baby Boomers a day reaching retirement age. The Life Insurance Consumer Disclosure Model Law unanimously passed by NCOIL will be discussed during the session. The model law is intended to be “a strong stand for life insurance policy owners and would empower consumers through education about their options”, said Rep. Rob Damron (KY) of NCOIL.

Statistics show that the majority of people do not understand the various forms of long term care, the different means to pay for it, and most do not plan for long term care until they are beset by a health care crisis. Seniors and their families are already struggling with the costs of every day living– if you add the costs of long term care to the picture it is a back breaking scenario for most Americans.

“Our goal at Emeritus is to ensure that seniors are properly cared for, and part of that goal is to help families with the financial decisions and details involved in caring for their loved ones,” said Jayne Sallerson, EVP, Sales & Marketing at Emeritus. “Many seniors and families are unaware that their life insurance policies are valuable assets and can be used in this way, and as a result some let active policies lapse. We hope that we can help educate seniors about their resources, so that more seniors can have access to the long term care that they need.”

The panel brings representatives from politics, Senior Living, insurance producers and private market funding solutions together to discuss the crisis situation for seniors attempting to pay the costs of long term care in today’s environment.

“There is a perfect storm of economic, demographic and political circumstances converging that threatens to blow seniors out of the water. The aging population is increasing while at the same time available dollars to pay for long term care decreases. Political leaders are looking to make deep cuts in Medicaid now and will be forced to address Medicare and Social Security soon whether they like it or not”, said Chris Orestis. “Private funding options to pay for long term care will play an increasing role in the equation and this panel is configured to discuss the situation from the perspective of the consumer, the long term care service provider, and the government.”

Life Care Funding Group (www.lifecarefunding.com) can be reached at 888-670-7773 or info@lifecarefunding.com.

BY: Van Mueller
Registered Representative
Wisconsin Agency of New England Financial Services
2010 Senior Market Advisor magazine Advisor of the Year

This month we are going to review the financial “miracle” of tax-deferred compound interest. Tax deferral provides amazing results because it employs triple compounding: It pays interest on the principle, interest on the interest and interest on the taxes you that would have paid if you were in an investment that was taxed annually.

Most people do not understand the amazing benefit of tax deferral. They think taxes should not be deferred if the rates will be higher in the future. But higher taxes actually increase the impact of tax deferral because you are receiving interest on the taxes you would have paid. This magnifies the compounding effect, which makes tax deferral even more beneficial.

Let me give you two examples:

Number one
Over 500 years ago, Christopher Columbus landed in America a very wealthy man. He had brought two dollars with him. That was a lot of money in 1492. Columbus was faced with a difficult decision about where to invest this money. Should he put his money in the “New World” bank or the “Old World” bank? Being an astute investor he allocated one dollar to each bank.

The dollar in the Old World bank paying 5 percent simple interest would be worth $26 today. The dollar in the New World bank paying 5 percent compound interest would be worth $39,323,260,000.

What if Columbus had been taxed at a 50 percent tax rate all those years? His simple interest investment would be worth $13 today, and his compound interest investment would have fallen to a value of only $230,109. Not using tax deferral would have cost Columbus $39,323,029,891.

Number two
I show my prospects that a $100,000 investment at age 40 paying 9 percent and paying taxes on an accrual basis at a 33 percent rate will grow to $400,000 by age 64.

If my client earns the same interest rate and defers taxes until withdrawal, that same investment will grow to $800,000. Even if tax rates increased to 50 percent and taxes were paid on the gain in a lump sum, at age 64, he would still net $450,000 after taxes. That is $50,000 better than paying taxes on an annual basis.

A good advisor would point out that 9 percent of $400,000 pays $36,000 per year in retirement income with $400,000 staying in principle. Meanwhile, 9 percent of $800,000 provides $72,000 per year with $800,000 left in principle. The two incomes of $36,000 and $72,000 would be fully taxable. Which would you rather have?

Tax deferral would have doubled the retirement income of your client with no additional risk. That is a financial miracle. This concept will guarantee your success. Share it with everyone. Assume your client doesn’t know. They don’t.

Recently, President Obama made a tax deal with the Republicans to extend the Bush income tax cuts for two years. Along with the extension, the federal estate tax issue was also addressed. As most people know, the federal estate tax in 2009 was 45 percent of anything exceeding $3.5 million.

In 2010, this tax was repealed and families, like the famous Steinbrenners, saved more than $500 million dollars in taxes, as their father, George, happened to die that year. The estate tax was supposed to come back to a tax rate of 55 percent on anything exceeding $1 million.

The deal Obama made with Republican lawmakers lowers the tax rate to 35 percent on anything exceeding $5 million for an individual and $10 million for a married couple. The law change also unifies the estate and gift tax exemptions, allowing generous people to give away a lot more money without paying tax. What this means is that less than 1 percent of the population will end up paying any federal estate tax.

As the robot on the old television show “Lost in Space” used to say, “Danger, Will Robinson!” What The Retirement Guys see as a danger here is being lulled into a false sense of security.

As an estate planning attorney, Mark first saw it back in the ’80s and ’90s when the federal estate tax exemption was first $600,000, then $750,000, then $1 million, then $2 million and finally $3.5 million. At these exemption levels, many folks out there thought they did not need to do any estate planning. If they were focusing only on estate taxes, perhaps they were correct. Now with the exemption amounts at $5 million to $10 million, many people may think the same thing.

Unfortunately, there are more issues to estate planning than just estate taxes. As financial professionals, it is good to stay up to date on these issues and talk with our clients about how these concerns may affect their individual situation. Here are a few of them:

1. Plan of distribution: Talk with clients and think through what they want to happen with their assets when they die. Who do they want to get their house, money and the grandfather clock? As a financial professional you need to make sure financial accounts correctly address those wishes. Have an attorney help with other assets.
2. Appointments: Make sure the clients have talked with an attorney about who they want to appoint to administer their estate to make sure everything gets where it is supposed to go. Note in your files who this person is and how to contact them.
3. Probate avoidance: If clients have assets that will go through probate, they should talk with the attorney about how much it will cost and how long it will take. A living trust may be the ticket to saving substantial attorney fees and to help speed up the process.
4. What if you don’t die? Every good estate plan includes health care directives and powers of attorney to name an agent to handle matters if you become too sick to do so. As the financial professional, make sure you have these up-to-date documents on file as well.
5. The ticking time bomb (income taxes): So many people forget about doing any estate planning for their retirement accounts (IRAs, 401(k)s, 403(b)s). These accounts many times have never been taxed and if clients don’t deal with it now, somebody will. There are laws and strategies in place now that allow for creating income tax-free dollars so that families can inherit an amount that is equal to that which is now in the client’s account rather than something like 40 percent less when Uncle Sam takes a big bite.
6. Who will be the guardians of the client’s minor children? Have they addressed this issue with the attorney? Who will provide the kids the care they need and has views on life similar to theirs that will provide a nurturing environment?
7. Beneficiary designations: Many clients do not know that their will or trust does not decide where accounts like IRAs and annuities go when they die. The beneficiary designation does. Work with your clients to review these designations; they may not be up to date.

For more information about The Retirement Guys visit www.retirementguysnetwork.com.

BY: Van Mueller
Registered Representative
Wisconsin Agency of New England Financial Services
2010 Senior Market Advisor magazine Advisor of the Year

I am so excited that I will be speaking at the Senior Market Advisor Expo in Las Vegas next month. You should attend the event. It really is vital to your success.

Why? People who attend industry meetings on a regular basis believe in themselves and in our business, and their belief rubs off on me. These meetings always refresh and rejuvenate me. They give me energy and new ideas. My success is a direct result of my attendance at these events. They are the most important investment I make in my development as an insurance and financial professional.

Here are a few things to look forward to:

1. Larry Winget. You absolutely must see him speak; he will inspire you. You will laugh while you learn. Do not miss this presentation.
2. My presentation. This will benefit your career immediately. I will show you how to ask your prospects and clients powerful questions. When you apply these strategies, you will increase your appointments dramatically and have more successful outcomes.
3. The break-out sessions. They are amazing at this meeting. Many of the presenters are keynote speakers in their own right.
4. The exhibitors. This meeting has one of the finest exhibit halls of any of the meetings I attend. I glean many of the great ideas that I return home with just by hanging out with the exhibitors.
5. The timing. The next two years will be exceedingly important. Elections mean that people will be talking about Social Security, Medicare, Medicaid, health care, pensions and inflation every day for the next two years. Our clients will be more aware than any other time in history. How valuable will you become to your prospects and clients if you can explain the consequences and opportunities those discussions present?

Most agents are only an inch from the success they desire. This meeting will provide you with the information you need to be successful. Don’t miss it.

Sign up for The Lead and get a new tip in your inbox every day! More tips:

• 3 more lead generation mistakes to avoid
• Advisors: Skype your way to success
• Create a social media policy for employees

Van Mueller has spent 37 years working in the insurance business, and has held Top of the Table status with the Million Dollar Round Table for more than a decade and was also Senior Market Advisor’s 2010 Advisor of the Year. For more information, go to www.vanmueller.com.

BY: Brandon Stuerke
Chartered Retirement Planning Counselor, Founder and President
Golden Financial Group, LLC

Advisors today are hungry! Hungry for a better marketing plan than sending direct mail seminar invitations. In fact, many have even contemplated leaving the business because today’s marketplace seems tougher than ever. Well, there’s hope. For the advisor who thinks strategically and builds a true joint-venture marketing plan, their growth is about to explode!

I can hear the objections already. “I’ve tried CPA relationships, the CPAs won’t refer!” Or, “The CPA said they’d work with me, but I never heard from them again!”

Chances are if you’ve heard anything like the above, you’ve probably approached CPAs with one of the following worn-out approaches:

1) Offering to Cross-Refer Clients

Let’s be honest. If you’ve ever tried this approach, no doubt you’ve heard the CPA say, “Sure Mr./Mrs. Advisor, I’ll send you clients! Why don’t you give me your card and I’ll call you when someone has a need?” Enthusiastically, you pull out a stack of cards not realizing they end up in the trash shortly after you leave.

Why? You’re using a worn out approach. There is no perceived value for the CPA because you sound just like the other 10 advisors that have approached them. You have to think outside the box and create an approach that makes you different. From the CPA’s perspective, if the last 10 advisors that approached them all said the same thing, and none of the advisors followed through, why would you be any different?

2) Offering to Split Commissions

Even worse than offering to cross-refer clients is offering to split commissions! If you approach the CPA on this basis, you sound just like every other advisor begging to work with their clients. But that’s not even the worst of it. What happens if you offer to split the CPA 25% on any business you write and then the advisor that comes in after you offers 50%? You don’t want to get into a bidding war with another advisor.

3) Cutting the CPA Out Altogether

I’m sure you’ve heard this one. “The CPAs won’t cooperate! Let’s start our own tax practice! We’ll charge less than any CPA in town, get all the tax clients for ourselves and then we’ll be the trusted tax professionals who’ll convert them to planning clients!”

On the surface this doesn’t seem like a bad idea. But while it’s different, it fails at one of the most crucial points: YOU CUT OUT THE PERSON YOU NEED MOST! It’s not doing the tax return that makes you the trusted advisor – it’s the relationship that has been built over the years. So even if you do get to do their taxes, you better plan on doing them for years before you earn their trust. It’s easy to let someone do your taxes, but manage their life savings? That’s another story.

The simple fact is, you need the CPA. You need them because you need to leverage the trust they have with their clients and the credibility they can lend to you as their advisor of choice. So what’s an advisor to do? If the above approaches won’t yield the results you want, then what will?

Find out in August! Join us at the Senior Market Advisor Expo this year, and I’ll share with you my secrets to cracking the CPA relationship code!

BY: Laura Stover
Retirement Specialist, Investment Advisor, Founder and President
Laura H. Stover Financial Group LLC

As more people rely on the Internet as their main means of communication, it is important to understand and employ all its tools in business. By successfully integrating technology into your financial advising and utilizing the Internet to prospect for, advise to and keep in contact with your prospects and clients, you too can be an Advisor 2.0.

Laura Stover has successfully integrated technology into her practice to prospect, educate, convert and communicate with her prospects and clients.

As a prospecting tool, Stover receives online referrals and utilizes video on her website to introduce herself and the firm and to educate prospects about retirement and estate planning. Stover offers a schedule of the no-obligation, live webinars on the events page of her website and, after a simple registration, invites prospects and clients to attend an upcoming or view an archived webinar on-demand.

She holds quarterly educational webinars at her office and invites her clients, their friends and prospects to attend, positioning it as a social gathering. This is also an opportunity to have clients bring a referral and she markets the event as a wine tasting and webinar and serves hors d’oeuvres and beverages to guests prior to the webinar, giving clients and their guests an opportunity to mingle and ask questions. For the webinar presentation, she invites guest presenters by way of ”live” broadcast from a remote location that could be anywhere in the world. Webinar attendees are able to view a PowerPoint and/or the presenter, interact and even ask questions in real time.

As prospects and clients come to the office to meet with Stover, her library of third-party supporting video is available on-demand. In the conference room hangs a large flat screen television. When a question arises or a financial recommendation is made, Stover accesses the video as a means to help illustrate her point. Additionally, she has ”resource” section on her website that is filled with third-party supporting videos and articles from major media outlets. She uses these tools to educate prospects on important financial topics and reaffirm the advice she gives.

Another way Stover communicates with her audience is through social media tools and social networking. Stover explains that there is power in establishing a social networking presence and encourages everyone to visit her Facebook page, view her YouTube videos and follow her on Twitter. She keeps a blog in addition to her website and regularly sends out information through her weekly electronic newsletter – which also drives people back to her social networking profiles. Because social networking is so widely utilized, she also uses it as a means of meeting new faces and prospecting new clients.

Stover differentiates herself because she actively applies these communication strategies to her practice as a means to generate leads, educate, advise and stay in touch with her valued clients and community supporters. Technology is helping Stover to increase her client base and reach a larger audience. At Advisor 2.0 at the Senior Market Expo in Las Vegas, she will teach you how to do the same.

BY: Simon Reilly
Leading Advisor Inc.

Values are the DNA of fulfillment. When one lives their values, the fulfillment of their values generates positive feelings and positive beliefs. Values and the positive feelings and positive beliefs that they inspire are also the DNA of one’s vision.

To create your vision for 2011, imagine looking back from Dec. 31, 2011, and ask yourself:

• What did you accomplish?
• What goals did you set and achieve?
• What made you happy?

Break your questions into the following categories:

• Administration
• Computer/systems
• Customer service
• Financial
• Marketing
• Office
• Products/product knowledge
• Sales
• Team
• Training
• Vision/planning

Now that you have created your vision, define your 90-day goals. Why 90-day goals?

• A 90-day goal makes your vision more attainable by making it short term.
• Enables you to relate to the rewards in the short term.
• Defines a few steps to create it versus getting overwhelmed with the perfect plan.

Take action now
To create the space to define your vision and 90-day goals, schedule one to two days away from your home and office in some place that is nurturing and where you can be anonymous.

Don’t miss Simon Reilly’s session at 11:30 am on Thursday, August 25th.

BY: Stefanos J. Loisou
Stefanos Loisou Financial Workshops

Perhaps, sometimes, we do not realize the financial and emotional impact on peoples’ lives with the work we do. There are many planning strategies we can employ, but we don’t often see the immediate financial and emotional results on the lives of the client or heirs.

A few months ago, I had the opportunity to experience the client satisfaction, gratitude and peace of mind that our experience and caring can provide to those who ask for our help. It is truly an example of the “SWAN” concept—allowing a client to sleep well at night.

Florida couple Evelyn and Joel had just lost their jobs after many years working for the same company and at the time were just under age 59 with accumulated 401(k) account values of $650,000. They wanted safety, security and growth potential for their qualified assets, and they needed minimum income to bridge the gap until eligible for Social Security benefits. They also had a mortgage at 7.5 percent, which they attempted to refinance without success.

They had attended a financial seminar and said they wanted safety and security for their qualified assets. The “advisor” placed it in a variable annuity without 72(t) provisions and withdrawal fee-free first year access to their accounts. After the first year, the couple learned of the unexpected charges and government penalties. They were furious and bewildered and tried to get themselves out the situation but to no avail.

Several months ago, the couple attended my financial workshop and requested a meeting. Through my efforts on their behalf, all of their qualified monies (less income withdrawals received) were returned to them, including all fees and charges. The IRA was redirected to a fixed index annuity with principle guaranteed and an 8 percent income account roll-up benefit. They were relieved.

I then addressed the mortgage, which at 7.5 percent was costing them nearly $1,600 per month. I directed them to a local bank, and though they had good credit, the bank needed verification of income.

Here’s the great part: With the income stream the FIA provided, Evelyn and Joel qualified for a 0-point, 15-year fixed rate mortgage at 4.5 percent, saving them $800 a month. This now provided them an additional nearly $10,000 a year in savings and provided cash flow. That savings and their new Social Security income keeps them comfortable, and they know their FIA income account value is growing and there when they need it.

The results were astounding, and when I see Evelyn now, she is smiling, and they want to attend my other workshops to tell the participants what I did for them. Evelyn and Joel can now SWAN.

Don’t miss Stefanos J. Loisou’s session at 11:30 am on Thursday, August 25th.

BY: Craig Ferrantino
Retirement and Investment Advisor
Founder and President
Craig James Financial Services, LLC

What sets you apart is not who you know, but who knows you! Learn how to put the marketing systems in place and create the urgency that gets prospective clients to take action. I have found that if you have multiple marketing irons in the fire, it leads to one hot brand!

Below is sneak peak at some of the marketing initiatives that I will share that have proven to be very valuable to my practice:

Host “Premature Retiree” educational workshops

Our current economic environment has created a premature retiree market. This is a largely underserved market that needs guidance and investment advice. I have taken the time and energy to understand this complex niche and their financial needs. I created an educational workshop to help the “premature retiree” take steps in the right direction to control and preserve their hard-earned assets for the additional years of retirement.

Use the media to spread your message
Help position you and your firm as a trusted expert in your local area.
The “Madoffs” in this career have tarnished the title and reputation of financial advisors across the country. To uphold the reputation of my own practice in Long Island, NY I utilize a professional public relations firm that specializes in working with financial advisors, to gain exposure in the media and showcase how my firm is truly unique and how we provide superior service to our clients.

Partner with a CPA to host a “Clues to Your Retirement Success: Implementing Tax-Advantage Strategies” dinner party for retiring detectives, police officers, and superior officers
Take the time to become educated on the many retirement options unions offer and the many changes that may take place in the upcoming years. There are few experts in this field, so taking the time to truly understand the many options union members have at retirement will help position you as “the one” that can help union members achieve a secure retirement future.

Don’t miss Craig Ferrantino’s session  at 10:00 am on Friday, August 26th.