Heather Hooper

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Communicating Differentiating Your Value as a
Plan Advisor
Heather Hooper VP, Retirement Strategies Tim
Wochok, CFP Retirement Plan Consultant
LWI Financial Inc. ("Loring Ward") is considered
to be an investment manager under Section 3(38)
of the Employee Retirement Income Security Act of
1974 (ERISA) only for those portfolios and funds
approved and administered by Loring Ward. Plan
advisors and trustees may have other fiduciary
obligations independent of those which are
assumed by an ERISA Sec. 3(38) investment
manager. This presentation is intended as a
general discussion on the subject matter and is
not intended to be a complete discussion of ERISA
or fiduciary duties under ERISA. Do not rely on
this section for legal advice. Each ERISA
fiduciary issue has its own unique set of facts
and circumstances demanding specific attention.
Seek the advice of competent ERISA legal counsel
on any questions concerning ERISA duties. LWI
Financial Inc. (Loring Ward) is an investment
adviser registered with the Securities and
Exchange Commission. Securities transactions are
offered through its affiliate, Loring ward
Securities Inc., member FINRA/SIPC. IRN R 13-347
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Agenda

• Quick review
• Expectations from Plan Sponsors
• How to Stand Out in the Crowd
• Communication Best Practices
• Driving the Sale
• The Deciding Factor

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FIRST, LETS REVIEW
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Key Concepts

• Marketing yourself
• The Why
• Discovery
• Setting Expectations
• Process
• Leveraging your partners

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WHAT PLAN SPONSORS WANT FROM THEIR ADVISOR
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The Basics
Accountability
Partnership
Communication
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What is Expected

• Exceptional service (defined)
• Goal setting and management
• A fiduciary relationship
• Simplification
• Plan design guidance
• A proactive approach to evolving the plan
• Participant marketing campaigns
• Processed focused support
• Consistency

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The Plan Sponsors Objective
To simplify their 401(k) life.
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HOW TO STAND OUT IN THE CROWD
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It Starts With Your Value Proposition Today
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Define Why Your Clients and Prospects Need You

• What role do you play in their lives?
• What do they think you do now?
• What would they tell someone else about you?
• What will they need from you in the future?

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Three goals for your value proposition

1. Your clients and prospects must understand the
   needs they have that you meet.
2. They must have a positive emotional response to
   you.
3. They must be able to articulate your value
   proposition to others.

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COMMUNICATION BEST PRACTICES
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5 Effective Communications Best Practices

1. Understand the clients perspective
2. Its not about you, its about them (the Personal
   Principle)
3. Replace jargon with words everyone understands
   (the Plainspoken Principle)
4. Keep it positive (the Positive Principle)
5. Theres no such thing as a perfect solution
   (the Plausible Principle)

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The Personal Principle

• WIFM?
• Starts with listening
• Discover what is important to them
• Uncover past experiences
• Talk about we, you and the future
• Make it tangible
• 10,000 taxis vs. 4 minutes
• Fee disclosure regulations and notices vs. this
  is what you have this is what it costs
• Make it human
• Personal stories
• Be genuine and understandable

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Say This
The Plainspoken Principle
Instead of This

• Volatility
• Equities
• Fixed income
• Longevity Risk
• Accumulation Phase
• Risk Tolerance

• Ups and downs in the market

• Stocks

• Bonds

• Possibility of outliving your money

• Saving and investing

• How you feel about your investments going down in
  value

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Keep it High Level
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Positive Principle

• No Fear
• Empower
• Avoid painting bleak pictures of their plan
• Be forward looking.
• Talk in favor of things, not against other things
• Recent VanKampen Investments study

Negative words Approval Positive Words Approval
Managing market risk 37 Making sure you can participate in gains while reducing downside risk 63
Managing inflation risk 19 Making sure you can afford to maintain lifestyle 81
Managing longevity risk 10 Making sure you have enough money as long as you live 90
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Positive Principle
Words to Use
Words to Lose
Words to Lose Words to Use
Immediate Long term
React to market Strategic

• Immediate
• React to market

• Long term

• Strategic

There are two magic words when it comes to
talking about investing with many investors long
term and strategic. Even in the face of steep
losses in their portfolios, most investors want
to focus their time thinking about their
long-term prospects. Even pre-retirees those
most likely to need short-term income respond
more favorably to the idea of long term.When
they talk with Financial Advisors they want to
hear about strategies because the idea of a
strategy is both optimistic and
forward-looking.
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The Language of Trust Maslansky, West, DeMoss
Saylor, Pg 97
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The Plausible Principle
If it sounds too good to be true,
it probably is
Positive
Over-reaching
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DRIVING THE SALE
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3 Keys

• Have them communicate challenges benefits of
  change
• Get them in touch with the big picture
• Offer insight and clarity

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Get Them Present to the Problem
http//www.youtube.com/watch?vx0_0BVyjJY8
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Identifying Opportunity
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Insight
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Clarity
Why?
When?
Who?
What? Where?
How?
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Lead them to a better experience
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THE DECIDING FACTOR IN THE SALE
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Remember They are Hiring You

• Confidence
• Conviction
• Authenticity
• Partnership
• Helping vs. selling
• People vs. money

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Define Who You Are
Public Relations
Corporate Identity
Employee Communications
Brand Architecture
Advertising
Sponsorships
Collateral
Events
Merchandising
Your Brand
In Person
Newsletters
Volunteer Efforts
Direct Mail
Client Reviews
Facilities
Niche Marketing
Online
Support
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Then Build Your Plan Around It
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In Summary

• Be the Advisor your clients didnt know they
  need.

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Questions?
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401k_at_loringward.com - 800-988-3755, Option 6