Senior Market Advisor expo speakers

SMA: Do you think most of the misrepresentation of annuities is intentional, or is it due to lack of advisor education? Can you explain why?
GW: It is a combination of the two. In general, the financial press is not very well versed when it comes to annuities, particularly when it comes to living benefits and modern portfolio theory. There is also the issue of "group think." It is hard to change someone's mind when his industry has already made up its mind. The real culprit, however, is that there is a big difference between theory and reality. In theory, equities outperform fixed-income [products]; in reality, most investors lack the patience (e.g., look at the DALBAR studies … investors in equity funds end up with returns of about half of what the market has done because they are always switching for whatever reason).

We in the industry also are guilty. Advisor education in annuities has been rudimentary at best. Advisors need to sit down with their wholesalers and learn about new products and target audiences. Moreover, once advisors are properly educated about asset allocation and real-world experiences, the use of both fixed-rate and variable annuity placement should greatly increase.

SMA: How can advisors go about becoming more educated about the products they use?
GW: There are two ways. No. 1, have lunch with product wholesalers. No. 2, go through a certification program that focuses on an area the advisor is interested in. As an example, The Institute of Business & Finance has the CAS (Certified Annuity Specialist) designation. It is a 60-hour home-study program. There are also other certification bodies that do a fine job.

SMA: What do you make of the EIA controversy? Will they end up classified as securities or as insurance products?
GW: It will remain as an insurance product. There has been quite a bit of posturing by regulatory bodies, compliance departments and broker/dealers. EIAs have not been sold properly (just like other products), but the industry is beginning to come out with more investor-friendly products. EIAs are also a very complex product, so there is the issue of ignorance as well as being tempted by a high commission.

SMA: What do you see in your crystal ball for the industry in the next couple of years?
GW: Great things. Products evolve and increased competition makes things better for everyone, particularly the consumer. There are assurances and guarantees provided by annuities that are not found elsewhere. As advisors gain more real-world experience, they will see the great need for such investment vehicles.

Maribeth Kuzmeski, president of Red Zone Marketing
Closing keynote speaker, Friday, Sept. 29

SMA: What do financial advisors underestimate or not understand about good marketing plans?
Maribeth Kuzmeski: Even the best marketing plans still need to be implemented. Seems obvious, but most marketing plans go through periods of inactivity unless they are being driven by at least one person in the firm. A plan is not worth much unless it has an action plan associated with it, detailing each specific marketing activity, the date this activity should start and be completed, and who is responsible for implementation. Use an Excel spreadsheet that can be sorted based on dates due and/or add each activity to your contact management database program. Review your action plan weekly and implement with consistency.

SMA: What would you say to someone who says he doesn't have the money to market well?
MK: Marketing doesn't have to be expensive. Depending on your current practice, marketing to your existing clients is often one of the most efficient and effective ways to generate referrals and new business. One of the best litmus test questions to help you evaluate how you are doing as a financial advisor is this: Am I getting referrals from my current clients? If you say, "Not as many as I could or should be getting," then it may be possible that communicating with your clients in a different way may actually be a great source of new business.

SMA: What can attendees expect to take away from your presentation?
MK: Attendees will gain smart marketing ideas that will delight clients, build new business, differentiate, and create and strengthen their brand. I will share specific strategies used every day by top industry producers that have consistently resulted in more production and higher bottom-line profits, including how to generate 15 to 30 referrals every month. This definitely is not theory but ideas that can be implemented immediately. Attendees will leave with proven, tangible strategies they can put to work right away for more success.

SMA: For a financial advisor, is it more important he market himself or the products he can offer?
MK: Most financial advisors have access to the same products. The only thing unique about the financial advisor is the financial advisor, the way he does business, and the advice and service provided. Give the client product, but it is the ?something' beyond the product that should be marketed and will ultimately close the sale – you, the advisor.

SMA: Why did you decide to use the language of football in naming your company and in the way you present your ideas?
MK: I grew up in Wisconsin, born and raised a Packer fan, and was literally schooled in football by my grandmother. She was a passionate football fan and insisted I become one. So when I started my consulting firm 12 years ago, I thought, "What better name to call my firm than Red Zone Marketing? Football fans know that the red zone is the final 20 yards before you score – the most critical and magnified area on the football field. It's where teams win or lose. I believe there is a similar area in business called the Red Zone. It is the point through which you must cross to get to the next level. It's where you close the sale or you don't – and what you do in the red zone to develop trust with the client makes all the difference in closing more sales.