Building family connections

SMA: How do you manage a book of business that size?
BB: We manage it by using a computer system. Technology is key to our business.

SMA: Can you describe your system?
BB: It keeps everything current. We're constantly modifying it to keep it current on a regular basis. That's the key. There's no way you could manage that many clients if you didn't have a database that was consistent. We have a great IT department, which is very important.

SMA: How did you determine that technology would become such a major part of your business?
BB: I'm not technology savvy. I just came up with some basic ideas and I was able to develop a database. It's not that sophisticated, but it works for us. It does the things I need it to do – making sure that the clients are called and that we remember birthdays and anniversaries. It's a basic tool, but it also creates an amazing report so that we can follow up with clients. One of the reasons my database is so effective is because I have a staff that is very creative. They are a big help with developing new ideas.

SMA: With a $20 million year last year, you must have some secret to overcoming objections. What is it?
BB: We give clients a road map. The road map shows them where they are from a personal and financial perspective. The road map is how we show them, "This is where you are now. This is where you possibly need to be if that is where you feel you should go based upon our recommendations." We give them that option and let them make that decision. That's how we get over the objections. It's for the client to make the final decision. Giving clients choices is how you overcome objections.

SMA: Tell me how your approach differs with boomer clients vs. senior clients.
BB: Baby boomers have more of a risk tolerance. Boomers live a different lifestyle than their parents. It's a totally different generation. You have to give them balance. Many of them have carefully watched what has happened over the years with our economy and they want to make sure that they have somewhat of a balance. A majority of boomers I see like to take a little bit more risk than their parents.

SMA: Is it more difficult working with boomer clients than it is working with senior clients?
BB: It is more difficult because your baby boomers have no idea about the position and situation their assets are in. They just put money in and they haven't looked at it for five or six years. So they are not planning for retirement. They don't even have a set date. I ask them specifically, "When would you like to retire? Do you have a date and a year set?' They really don't know. They don't even know if they can retire. Many of them don't even have a budget.

SMA: Why are boomers so ill prepared?
BB: Boomers today are so busy raising families and working that they don't take the time to sit down with a financial planner and say, "Hey, these are my goals. Let's just kind of go with the goals year in and year out." Then I think it kind of hits them like, "Wait a minute, we don't have a lot of money in the bank. We need to start planning." The problem is that you used to be able to look at the rule of 72 and you would be able to double your money. Today, you can't do that all the time.

SMA: About 60 percent of your business comes from annuities. Annuity products have taken some lumps in the press lately. How do you handle feedback from your clients based on this sort of media coverage?
BB: We do get feedback from our clients – they see a lot of articles. The problem is that these articles are kind of like a cookbook writer writing about financial products. The writers are not writing the exact story. They are elaborating on things that apply to other types of annuities like variable products. They relate those to fixed index products. What we do is clarify the difference to the client. We go through the articles with them. Clients are very comfortable with that. Fixed annuities are good products. They are very safe. If you look at the vehicle itself compared to a variable annuity, it is not as complex. It is simple to understand. On the other hand, a variable annuity has up to 60 accounts – a much more complex product.

SMA: Is a variable annuity ever appropriate in a senior portfolio?
BB: It just depends on the tolerance level of the client.

SMA: So as you get more and more boomer clients, do you think you will sell more variable products?
BB: I think each client is different. You cannot earmark how you can set someone's portfolio. Each client that walks in my firm is different. I have to look at them in a different light.

SMA: You have a long-term strategy of targeting female boomer clients. How do you plan to execute and what are your goals?
BB: The women's market is in an interesting market. I decided to start educating myself more and more. I decided I would start marketing just to women because I am a woman business owner. I have an all-woman firm. We enjoy working with women and they bring their families and they are bringing their husbands and they are bringing their kids in. Statistics show that women only spend about 38 percent of their time investing.

SMA: How do you plan to attract female clients?
BB: Well, we attract them by being an all-woman firm. We have a designated marketing product that is earmarked just for women, certain phrases and logos that we use, educational workshops. It's going to be word of mouth. Women like to talk. If you ask a woman a question, she'll continue it by telling you a little bit about her life.

SMA: What is the most important lesson you've learned?
BB: I think the most important lesson I've learned is to make sure you are dealing with companies that represent you and that have a very strong ethical background. Go with your gut. Building relationships is the No. 1 reason you are successful. You have to have good relationships behind you, good companies. You have to have a great staff. That is the key to success. You can't do it by yourself.