The Final 5
Richard Berry, Berry Financial Group, Dillon, S.C.
Michael "Cy" Cajthaml, McHenry County Investment Services Inc., McHenry, Ill.
Fred Cowley, Cowley Financial Group, Fort Worth, Texas.
Craig L. Randall, Randall & Louis Wealth Management, Fountain Valley, Calif.
Dean Zayed, Prizm Financial Advisors; Brookstone Capital Management, Clarendon Hills, Ill.
There is no shortage of highly talented advisors serving the senior market. We at Senior Market Advisor are reminded of this fact every year as we sift through the many dozens of thorough nominations we receive for what has become one of the most prestigious honors in the industry for an advisor.
It's no easy task to whittle the nominations down to five finalists, and it's even harder to select the winner, who will be announced at Senior Market Advisor Expo at Wynn Las Vegas August 22-24.
All of the finalists passed rigorous background checks through the National Ethics Bureau, and extensive research was done on a number of candidates before we selected the finalists. In addition to some eye-popping production figures, each finalist possesses qualities that lift their practices above the crowd. They prove that an ethical, client-first approach combined with effective work habits can really work in a big way. They use progressive techniques, have captivating personalities, they give back to their communities, and offer a willingness to share the secrets of their success with other advisors, all of which work for the betterment of the industry at large.
Read on to learn how they have reached this elite level, and don't miss seeing all five in what promises to be a lively discussion at the Advisor of the Year Finalists Roundtable, the middle-day keynote event at Senior Market Advisor Expo.
– Brian Anderson
Craig L. Randall, RIA
President and Chief Investment Officer, Randall & Louis Wealth Management, Fountain Valley, Calif.
Family: Married for 28 years to wife Janice; sons Trevor, 16, and Cody, 14.
Education: Bachelor's degree from California State University; MBA in finance and business management from Pepperdine University.
Years in the industry: 20
2006 Personal Production: $40 million ($25 million annuities; $30,000 in LTCI premium collected; $10 million face amount in life insurance)
Craig Randall has been called a "seminar advisor for the next generation." His seminars are non-threatening and low-stress, leaving attendees feeling optimistic and good about themselves. It is not unusual for some of his seminars to have a 100 percent appointment ratio. He is also a gifted teacher with an effective ability to train other advisors, which has manifested itself in very high production levels in agents he has worked with.
Josh Hattig, president at Hattig Financial Co. in Longmont, Colo., says that beyond his own parents, Randall has been a primary mentor for his career, and has taught him the value of asking the right questions. "With new clients, he really does it like we're supposed to do it," Hattig says. "He's been able to figure out a good way — in a short time — to truly be an advisor [to new clients]."
1. Tell us about your journey to the senior market — how did you get here, how long have you been here, and what keeps you here?
Craig Randall: I've been in the financial services industry for over 20 years now. Early in my career I was quickly moved into management roles. After a few years I found myself vice president of a small but rapidly growing financial services company. I was in charge of training on a nationwide basis. Needless to say I was traveling quite a bit, which was not a problem until my wife and I had our first of two sons.
I made a conscious decision that I was going to be there for my family, full-time. Traveling two weeks out of the month was simply not an acceptable option. It seemed to me that an easy transition would be to take a position as a financial advisor in a bank program. This is really when I tapped into the senior market. Most of the bank customers that had large deposits were seniors and they had time to come into the branch during the day to meet with me.
Eventually I made the transition from working in the bank program to being independent and working for myself. At this point I've been working with this demographic group for about 16 years. One of the reasons we continue to build our clientele around the senior market is that they are most comfortable working with someone they have developed a relationship with and that's how I like to run my business. We always take our time, never rush into anything and place the emphasis of our business on the relationship.
2. What are the biggest keys to the success of your practice?
Randall: Our success is really based on three fundamental elements that drive many businesses.
1. Marketing
2. Transitioning the prospect to a lifetime client
3. Support staff
Let's start with the marketing aspect of our practice. Of course we get referrals from the CPAs and attorneys we work with as well as referrals from our existing clients. What really keeps us busy is the 40 or so appointments we set on a monthly basis from our public seminar program. Believe me, when you have 40 new appointments with people that you don't know yet every month, it would be hard not to be successful.
You do have to take these folks through the prospect-to-lifetime-client process. I can't tell you how many things we do with these folks for free, but I've found that when I'm not concerned about how much money I'm making and am only concerned about how I can help this person, money will follow. Part of our marketing plan every year is the goals we set for ourselves. I never set a production goal or earnings goal. I prefer to set action goals that will allow us to continue to build our practice.
Last but certainly not least is the value of support staff. My practice is very busy and, believe me, I need help all the time. I have two support people, a receptionist and a licensed administrative person who has the ability to work with our existing clientele very effectively. The key to good support staff is training and patience. Much of my success is due to the support staff I have developed; without them I couldn't do what I do.
3. What do you see as the biggest issues facing the industry and/or your practice?
Randall: The two biggest issues I see are the dramatic change in demographics and the increased regulation of our industry.
Let's talk about the demographic change first. We have this huge generation called the baby boomers that are just beginning to hit retirement age. I believe that they will not be as prepared for retirement as their parents were. Many of the folks that are in this generation won't have pensions when they retire and should consider Social Security as a supplement to their retirement income. This group will also live longer than any another generation, so instead of having to plan for a 15- to 20-year retirement, we will need to plan for 30 to 40 years, which has its challenges, especially when you consider inflation in the income equation.
Now let's take a quick look at the regulation of our industry. Regulators are exerting more and more control over our industry, and this is not going to change. The industry shift seems to be toward managed money/asset fee-based models and away from 100 percent commissions. There are also licensing issues being considered that certainly will affect the entire industry. I really believe that those people that truly belong in this business will continue to thrive no matter what actions the regulators take.
4. What has been your most effective method of prospecting for new clients?
Randall: The best method I've found to continually build our client base is public seminars. They are actually a lot of fun to do and have a great return on investment, when done properly. Seminars tend to be kind of expensive to do, but when we are consistently getting 15 to 20 times our cost for return on investment, they are very productive.
5. Tell us about your community involvement, and what kind of effect has it had on your practice?
Randall: When it comes to community involvement, I don't look for any return on my time or donations. I'm in a position at this stage in my career where I feel obligated to help when I can and expect nothing in return. I can remember one Sunday at church our pastor was going over the budget shortfall they had and asked everyone to help if they could. I was able to place a check in the basket as it passed by for the entire amount of the deficit. My kids are involved in several different sports and we are able to help the teams out from time to time. Most recently my oldest son's soccer team was going to a national tournament and needed new uniforms. After a few weeks it became apparent that the team's coffers didn't have enough money to get the uniforms. My wife went out and purchased the team new uniforms. These are just a few of the things we have been fortunate enough to do. Now I'm in California and we have something called "karma" here and I really do believe that when you do good things, good things will happen to you. So perhaps my practice does benefit from these types of generosities, but that's not why I do them. When you achieve a certain level of financial success, giving back is really just the right thing to do.
6. Tell us about your typical work schedule — how many hours a week do you usually work, how many appointments per week, how often do you take vacations, do you give seminars, etc.?
Randall: I work about 60 to 65 hours per week, which seems like a lot of time, but when you love what you do, time just flies by. I spend about 45 hours per week in the office and the rest of the time is spent working at home. We have a dedicated room in the house that we call the homework room. It has desks, computers, printers and anything else we might need. In the evening the boys and I will all do our homework together in the room, which gives me the opportunity to help them with their homework while getting mine done at the same time.
As far as appointments go, on an average week I will have 35 to 40 appointments that consist of existing client meetings and meetings with prospects that came from the seminar process.
When it comes to vacations we only take two to three weeks off a year, but we really go on some great trips. I remember when I was a kid, the family vacation meant getting into the family car and driving cross-country to visit a relative we didn't even know. Now when we go on a family vacation, we get onto a plane and fly to great, exotic locations. It's really a privilege to be able to take my family on such great trips; we are very fortunate. One of the reasons we can take such great trips is that I'm doing a minimum of three seminars per month. I bet in a year we do between 40 and 48 seminars. The opportunity we get to meet so many new people at the seminars is the driving force of our practice.
7. In the next five years, how do you see the landscape of what you do changing?
Randall: I'm sure that our practice will have transitioned to more of a managed-money model and away from commissions only. I'm also very sure that more of my time will be spent giving back to an industry that has given myself and my family so much. Currently some of my time is spent training other agents and I'm sure that will continue to develop and expand. Nothing gives me more satisfaction than watching an agent I've had a hand in training become very successful; it's really the best!
Richard Berry, CSA, CLU, ChFC
President and owner of Berry Financial Group, Dillon, S.C.
Family: Married for 20 years to wife Jan; two sons and one daughter — Jordan, 17, Jamison, 14, and Jana, 10.
Education: Bachelor's degree from Francis Marion University
Years in industry: 20
2006 Personal Production: $28 million in annuities
Richard Berry has racked up a number of impressive statistics, beyond his $28 million in 2006 annuity production. Working out of a small town, he spends a lot of time on the road, going up and down the North Carolina and South Carolina coasts. Referrals accounted for about two-thirds of his business, while seminars generated the remaining third, and he is able to close business about 70 percent of the time at the first appointment.
Bo Johnson, chief marketing office at FIG Marketing, likens Berry to a Ferrari who truly outshines the Cadillacs. "We have 10,000 agents, and I've never met anyone like Richard Berry," Johnson says. "All his clients love him. He's the guy you want to have the ball in the last minute to make a play."
1. Tell us about your journey to the senior market — how did you get here, how long have you been here, and what keeps you here?
Richard Berry: My journey to the senior market began in my hometown of Dillon, S.C. I had just received my B.A. and had all intentions of following in my father's footsteps and pursuing a career in education and administration. My entire future changed when my next-door neighbor, George Lester Rogers, invited me to shadow him as he was about to retire from a lifelong career with New York Life. In our small, rural county of only 30,000 people, George introduced me to his clients who were mostly farmers and country folks at or nearing retirement. I quickly identified with the work ethic and integrity of this patriotic generation.
On February 2, 1987, I joined New York Life, with sales training and product knowledge that were second to none, although I was always one prospect short of unemployment.
In 2002, I became independent and joined an FMO specializing in marketing with seminars and direct mail at its core. Over the past five years, our Berry Financial Group Family has grown into a team of six full-time and four part-time staff members who allow me to do what I love best — meeting with and helping retirees achieve financial peace of mind.
2. What are the biggest keys to the success of your practice?
Berry: The biggest keys are relationships, staff, focus, and passion. Statistically it has been proven that 85 percent of people leave their financial advisors not because of a lack of returns but because of a lack of relationships. At Berry Financial Group, we use every opportunity to bond with our clients, from phone calls and mail to client events and dinners. I can honestly say that each member of my staff goes the extra mile to make sure excellence is achieved in my office. We support each other and our clients through prayer, hard work, encouragement, and fun.
Two of my favorite quotes best sum up my approach to life and to my business: "If it is to be, it is up to me," and, "Help people get what they want, and you will get more of what you want." Everything that is done in appointments, programs and daily office operations has one focus — safety. I truly have a passion for helping the greatest generation on earth enjoy the fruits of their labor, free from financial worry.
3. What do you see as the biggest issues facing the industry and/or your practice?
Berry: The biggest issues are communication, ethics and regulations. I believe that simplicity and information are keys to gaining trust and confidence from clients and prospects. Every investment tool has a purpose and a place, and it is imperative that we, as financial guides, provide our clients with strategies that are appropriate for them based upon many factors such as age, risk tolerance, accumulated wealth and personal goals. We owe it to this generation to provide them with the information necessary to make wise decisions regarding their financial future.
4. What has been your most effective method of prospecting for new clients?
Berry: As I have previously mentioned, the use of seminars and direct mail initially had the greatest impact as I prospected for new clients.
Conducting financial workshops provides me with the opportunity to identify my target market, to establish credibility and rapport with the audience, and to increase awareness of issues facing retirees today.
As my client base has grown, an increasing number of new clients are derived from referrals. In 2006, of the $27.9 million in assets under management, $18 million was derived from client referrals and new business from existing clients. Upon delivery of a policy, I make new clients aware of the benefits they can receive by recommending their friends and family members to Berry Financial Group. I also give them a calendar of events that includes referral dinners, appreciation events and public workshops to which they may bring guests throughout the year.
5. Tell us about your community involvement, and what kind of effect has it had on your practice?
Berry: Involvement in my immediate community does not have a direct impact upon my practice. Only 20 percent of my clientele are residents of my small hometown, while the majority are residents of coastal communities 80 to 150 miles away. I do feel strongly, however, that giving back to those around you is very important. I am a member of the Dillon Christian School Board of Directors, and I have served as a deacon at First Baptist Church. I support numerous charitable organizations, and this year I have placed special emphasis for "Addie's Cure," a non-profit organization dedicated to funding research for lung cancer.
Also, for the past several years, I have been involved with helping other producers across the nation grow their practices in the senior market. As a mentor, I enjoy watching others achieve goals and learn how to better serve a generation who has meant so much to our country.
6. Tell us about your typical work schedule — how many hours a week do you usually work, how many appointments per week, how often do you take vacations, do you give seminars, etc.?
Berry: My typical work schedule requires perseverance and stamina. Mondays, Wednesdays and Fridays are usually 12-hour days. I normally drive 90 minutes to reach the coastal communities I serve, where I see an average of five appointments a day. This includes opening interviews, annual reviews, policy deliveries and occasionally a few follow-ups. Tuesdays and Thursdays are frequently 14-hour days with appointments first and seminars from 6 to 7:30 p.m. followed by a 90-minute drive home.
I advocate that there are four "F's" in life, in this order of priority — Faith, Family, Finances, and Fitness. I exercise daily, spend devotional, quiet time on my daily commutes, and enjoy tennis and golf when time permits. I reserve Saturdays, Sundays, holidays and at least four vacations a year to spend time with my wife and children.
7. In the next five years, how do you see the landscape of what you do changing?
Berry: Financial services has been and always will be an evolving industry. Changes take place gradually, but there is always change. New marketing strategies will begin to replace the methods we are currently using to reach prospects. Companies will develop new financial tools to focus not only on accumulation but also to concentrate on distribution of assets. Studies show that over the next few years, 90 percent of women will be solely responsible for their finances, and $25 trillion of wealth will be transferred from one generation to the next.
I believe that an even greater opportunity to market and to create protected investment vehicles is on the horizon. Although our marketing strategies and products may change, greed and fear will always be the primary forces driving investors. Consequently, asset preservation has, is, and will continue to be the main focus for the senior market.
Dean Zayed, JD, LLM, CFP
President, Prizm Financial Advisors; CEO, Brookstone Capital Management, Clarendon Hills, Ill.
Family: Wife Michele, children Marissa, 7, and Anthony, 5.
Education: Economics degree and JD from Northwestern University; LLM (Masters in law with a concentration in taxation) from IIT Kent College of Law.
