Securities America Financial Corporation is a financial advisory firm offering investment advice and other financial products & services. It is based in La Vista, Nebraska. It reviews your financial processes and delivers high performance products & services in the financial domain. Also Securities America is the most reputed firm when it comes to corporate clients, and has a monthly newsletter which provides a lot of information about the latest developments in the company and the finance world in general. Go through it and feel free to tell us what you feel.
1. Daily Star THE
Become Your Clients’ Clear Choice Today’s
Income distribution track explores depth and breadth of NextPhase programs. ™
HIGHLIGHTS
B
efore retirement, the average investor has Securities America’s initial foray into income
three financial advisors. After retirement, distribution began in 2005 when the company Personal Branding in a Social Media Age
investors pare down to just one advisor. began offering The Income For Life Model ™, This session covers practical techniques for
building and projecting your personal brand,
How does an advisor become a software and marketing system for particularly in the age of social networks where
a client’s only advisor during those generating portfolio proposals using a reputation and word of mouth are critical.
critically important retirement years? time-segmented method. Within this Bill Reeves, Partner, Comunicato
That’s the question Securities strategy, an investor’s retirement 8:00 a.m. to 8:50 a.m. – Asbury Hall A
America asked in 2005. The answer assets are divided into segments and
started with industry-leading research tagged to provide income over a Best Practices from Your Colleagues
Hear from a panel of top assistants on how they
that compared systematic withdrawals, specific period of time in retirement. make their office run smoother, clients happier
variable annuities and time-segmented Dan Goeken, a Securities America and become invaluable to advisors.
distribution, resulting in the white advisor in Norfolk, Neb., said the visual Moderated by Laurie Burkhard, Sr. Business Consultant,
paper “Capturing the Income framework of the time-segmented Securities America along with Sales Assistant Advisory
Distribution Opportunity.” That strategy helps him more easily explain and Cultivating the Assistants Group Members
white paper recently received the his recommendations to clients. For 11:00 a.m. to 11:50 a.m. – Salon 8
Thought Leadership Award from JIM NAGENGAST example, one client who still planned The NextPhase™ Income Distribution
the Retirement Income Industry to work for a while had $750,000 in his Client Planning Process
Association (RIIA) and was also “As Baby Boomers 401(k) plan. He found he could start Learn the five key concepts for marketing
published in the inaugural issue of to and gaining income distribution clients,
the Retirement Management Journal.
start to retire, now is his time-segmented plan bylater of
funding segments three and
taking and identify how to win business using the
NextPhase™ approach and marketing materials.
In the six years between publishing the time for you to an in-service distribution, allowing
the white paper and receiving the him to use investment products not Zach Parker, Director Annuities & Insurance, Securities America
become the ‘go to’ 1:00 p.m. to 1:50 – Salon 7
award, Securities America has been available in his 401(k). The client left
building the industry’s most extensive professional for segment two in his 401(k) plan’s stable Developing a Plan to Transition Your
support system targeted at helping value choice because it already met C Share Business to Advisory
retirement income Gain insight on the regulatory environment
advisors become the income distribu- the objectives for that segment.
distribution.” relating to 12(b)-1 trail commissions, start
tion specialist in their community. “Time-segmented distribution planning to transition C shares to advisory,
“Regardless of the niche in which really provides the structure to ease and develop the plan to make that transition.
you concentrate your business, the transition of the clients’ anxiety about the earlier segments, Jeremy Robson, Director Advisor Services and Erick Lindewall,
baby boom generation will touch every advisor to one because the later segments have a greater growth Director Advisor Sales, Securities America Advisors
extent or another,” said retirement income specialist objective,” he said. 2:00 p.m. to 2:50 p.m. – Asbury Hall A
Zach Parker. “Every advisor needs to have a plan and As the time-segmented strategy caught on
Introduction to Managed Opportunities
be prepared to address this need for your clients, or among advisors, Securities America recognized Unified Managed Accounts (UMA)
risk losing clients to an advisor who is prepared.” the need for a way to translate the proposal See the new Managed Opportunities UMA, the
Today’s Income Distribution Planning Track, into actual investments and then monitor each benefits of using a UMA, and the technology
taking place in Salon 7, will feature sessions for segment’s performance against the plan. we’ve built so you can implement proposals for
beginners and advance planners and will highlight The Managed Opportunities® advisory platform, multiple managers in one brokerage account.
Securities America’s latest income distribution which offers both advisor-directed and third-party Marla Cross, Vice President, and Jeremy Robson, Director
resources: an Income Distribution Desk, an money manager options, provided the perfect Advisor Services, Securities America Advisors
expanded Client Fact Finder and the Product vehicle. In 2010, Securities America rolled out 3:30 p.m. to 4:20 p.m. – Asbury Hall D
Allocation Models. With these tools, Securities Managed Opportunities® NextPhase™, an enhanced
America continues to lead the industry in retire- platform solution that supports a time-segmented
ment income distribution planning. continued on page 3 Your business growth expert.
Contents Become Your Clients’ Clear Choice (continued) . . . 3
Technology Continues to Evolve. . . . . . . . . . . . . . 4
Conveniently Earn CE and Firm Element . . . . . . . 6
Opening Day Photo Page. . . . . . . . . . . . . . . . . . . . 7
Finding Returns in the Global Economy . . . . . . 10
Shift from C Shares, Avoid 75% Pay Cut . . . . . 11
Challenges Make SA & Advisors Stronger. . . . . . 5 New Unified Managed Accounts (UMA) . . . . . . . . 8 NextPhase™ University Training (continued) . . . 11
NextPhase™ University Training Program . . . . . 5 Specifically for Assistants, Staff and More . . . . . 9
3. Daily StarTHE
Become Your Clients’ Clear Choice (continued from cover)
The wave of the future – the wave of Baby Boomers – points to the need for retirement income distribution planning.
distribution strategy; a retirement income investment strategy designed Securities America’s director of insurance and annuities. “These tools
to seek consistent income throughout retirement. tend to work better during accumulation years than in distribution
“Managed Opportunities NextPhase offers advisors access to third-party years when clients have less time and fewer new assets coming in (such
managers as well as the ability to utilize the advisor-directed technology as wages) to recover from losses. Tools for risk profiling that rely on hard
to effectively manage client assets,” said Bill Kantner, a Securities America numbers like assets and income can certainly give the client a ‘number,’
advisor in Chadds Ford, Penn. “The enhanced trading and but they don’t address the client’s needs for major expenses
account analysis capabilities of Advisor Directed allow me to or the impact on the client’s legacy plan. The expanded
save a considerable amount of time in my day-to-day asset ROI Profile allows the advisor to take a comprehensive
management tasks. This is the main reason I’m looking to con- look at all of the client’s needs to create a more effective,
vert as much of my asset base to this platform. The reporting efficient income distribution plan.”
capabilities allow me and clients to have access to reporting To help advisors determine which products may be
24/7. This closed-loop solution lets me create, implement, suitable for each segment when investing client assets into
manage and report on clients’ assets all on one platform.” the NextPhase strategy, Securities America created the
The Managed Opportunities NextPhase tools help advisors Product Allocation Model.
identify the appropriate allocation needed across multiple “We identified several options in each segment advisors
segments as well as the target accumulation for investments could consider as suitable alternatives when creating a plan
within each segment, so that when harvested they will provide for their clients,” Parker said. “In addition to summarizing
the desired income throughout that period of time. the various product options, we highlighted factors for
Like many advisors, Patricia Hinds, CFP®, a Securities ZACH PARKER advisors to consider when deciding which products to use.
America advisor in St. Cloud, Minn., says that in her early We also provide an Efficient Practice rating to indicate
years, working with clients focused on accumulation. “The expanded ROI how easily each product type could be implemented.”
“I had a few clients taking periodic distributions or Parker will provide more information on the Product
occasionally a lump sum, but there was no focus on creating
Profile allows advisors Allocation Model and other NextPhase Income
an income stream from the assets,” she says. “As the clients to take a full look Distribution Solutions during the NextPhase Income
– and I – got older, we talked about how they would need to at all of the client’s Distribution Client Planning Process session TODAY
use the dollars they saved. It became clear we couldn’t hap- at 1 p.m. He will also discuss the expanded ROI Profile
hazardly have investments out there and just tap into those needs to create a more in detail during the Advanced Planning Concepts for
accounts arbitrarily. It’s interesting that although our view effective income Income Distribution Specialists TODAY at 2 p.m.
of how we will spend our time in retirement has certainly
changed, clients still arrive at my door with old-fashioned distribution plan.” Don’t miss the full line-up of income distribution
investment methodology ingrained in their thinking.” sessions taking place TODAY in Salon 7:
While developing the initial income distribution white 8:00 a.m. – Introduction to Time-Segmented Distribution
paper, Securities America realized the importance of addressing the and Managed Opportunities NextPhase
impact that clients’ emotion-based decision making regarding finances
can have on portfolio performance. Soon after publishing the white 11:00 a.m. – Income Distribution Hot Topics,
paper, Securities America introduced the ROI* Reliability of Income by Smedley Financial Services
Profile, a questionnaire designed to help advisors assess and measure 1:00 p.m. – The NextPhase Income Distribution
clients’ emotional needs for guaranteed income and reaction to Client Planning Process
volatility. To Securities America’s knowledge, the ROI Profile was the
first of its kind in the industry. Earlier this year, Securities America 2:00 p.m. – Advanced Planning Concepts for
expanded the ROI Profile to include questions to determine whether a Income Distribution Specialists
client will need large lump sums during retirement, and their desire 3:30 p.m. – This is Not Your Parent’s Retirement:
to leave a legacy. The expanded tool, which includes an advisor Income Planning in the New Normal, by Sun Life
scoring key and suggestions for products and services based on client
4:30 p.m. – Today’s Retirement Challenge: Generating Higher
responses, has been renamed the Client Fact Finder.
Guaranteed Income When Clients Need it
“Traditional risk profiling methods have attempted to quantify a
client’s sensitivity to financial loss in a portfolio,” said Zach Parker, – Natalie J.S. Hadley
The e*Office NextPhase™ Support Center
In addition to the many professional and expert staff who are knowledgeable about retirement income
distribution, there are some key materials available to you at your convenience on the e*Office Website.
They include White Papers: Capturing the Income Distribution Opportunity and Marketing Yourself as an Income
Distribution Specialist; Advisor Training: Implementing Income for Life in NextPhase, Introduction to NextPhase
Coaching (New Session Starts Sept. 1, 2011) and many NextPhase Coaching Resources; Marketing Materials:
NextPhase Strategy Overview Brochure, NextPhase Trifold Brochure, NextPhase Client Presentation with posters,
invitations, letters and press releases (presentation coming soon!), Retirement Myth #1 flyer and Retirement Myth #2 flyer;
Tools: Confidential Fact Finder Advisor Guide, Confidential Fact Finder, Product Allocation Model Presentation and Product Allocation Model Handouts.
4. Daily Star THE
Technology Continues to Evolve to Meet Advisors’ Needs
The Technology Pavilion offers onsite experts and computers to help with your technology questions.
E
ach year at National Conference, by members of the Field Technology Team. The Technology Pavilion is the place to go if you:
Securities America brings you the These professionals have a combined 120 years of
Technology Pavilion, where you can get } Want to better understand how to use a
experience in the financial industry. Of that,
hands-on with leading-edge industry specific solution.
98 years have been with Securities America in
technology from Securities America and our areas that include operations, management, } Want to conduct daily business more
strategic partners. sales and compensation. efficiently and effectively.
A conference fixture since 1999, the The Field Technology team will be available } Want to know about new systems and
Technology Pavilion is centrally located in throughout the conference to answer your ques- features we’ve added since last
Salon 5, next to the Asbury Lobby, and staffed tions, demonstrate services and discuss changes. year’s conference.
We will also be collecting your ideas for future
enhancements. Many of the improvements to
our technology over the years have started with
a conversation at the Technology Pavilion.
We are constantly tweaking and adjusting our
systems to make them as intuitive and efficient
as possible through honest, constructive
feedback from our advisors.
The Technology Pavilion will also have
demonstration computers where members of
Field Technology will be able to discuss and
demonstrate any e*Office Advantage technology
that you wish to learn more about. New this
year, we will have iPads, iPhones and Android
powered tablets available to demonstrate our new
solution for accessing e*Office Advantage from
mobile devices.
Many of our technology partners will be joining
us to provide you with information about their
services. Morningstar can show you Advisor
Workstation and other great services. National
Financial and Pershing will both be there to
exhibit the powerful technology available from
our clearing firms. Futureware Distributors will
be attending to discuss and take orders for com-
puters, printers, scanners and other hardware for
your office. If you are interested in performance
reporting, stop by the Albridge booth for a
demonstration and make sure to talk with
CashEdge about how their service can automat-
ically integrate not-held assets into this system.
Redtail CRM will showcase its web-based, easy-
to-use client management solution designed
specifically for financial professionals. Emerald
Publications is available this year to help answer
questions about effective online marketing using
a professional website and will also discuss their
newsletters, seminars and other materials.
If you need to check your email or the markets,
visit the Cyber Café, located adjacent to the
Asbury Rotunda at the entrance into the Asbury
Lobby, directly across from the Technology
Pavilion. Don’t get too engrossed, though! We
want you to make the most of your time with us
by attending conference sessions and learning
from your peers, our home office professionals and
product sponsor representatives.
– LisaJo Crawford
Technology Pavilion Hours
Saturday . . . . Noon to 5 p.m. & 8 p.m. to 10 p.m.
Sunday . . . . . . . . . . . . . . . . . . . . 8 a.m. to 7 p.m.
Monday . . . . . . . . . . . . . . . . . . . . 8 a.m. to 6 p.m.
Tuesday . . . . . . . . . . . . . . 7:00 a.m. to 10:00 a.m.
5. Challenges Make Securities America and Advisors Stronger
Holtz tells audience, “Don’t maintain – get better!” at his inspirational opening-night keynote address.
leaders are closely involved in the new said. “If you’d like to experience that kind of
T
he Securities America 2011 Connect!
National Conference opened with a ownership process, but for the majority of our growth in your fee-based assets, we’ll be starting
packed general session featuring Jim home office employees, it’s business as usual,” our fifth class in late October.”
Nagengast’s inaugural conference Nagengast said. “We have continued to focus on Nagengast closed his comments with a reminder
address as the company’s chief executive officer our key initiatives for 2011: NextPhase™ of what made Securities America the nation’s
and thoughts from keynote speaker Lou Holtz Retirement Income Distribution, Ease of seventh largest independent broker/dealer.
on having a “game plan for success.” Kirk Business and Business Growth.” “The reasons you joined us and the reasons
Hulett, senior vice president of strategy and Each day of the conference will focus on one you stay – none of that has changed,” he said.
practice management, served as the evening’s of those initiatives, Nagengast said, starting with “Our payouts remain competitive, our technology
host. Nagengast addressed the challenges NextPhase Retirement Income Distribution. stands head and shoulders above other b/ds.
Securities America faced in the past few years, “About two years ago, we committed Our fee-based programs are among the most
most notably the legal matters surrounding ourselves to making Securities America the flexible and automated in the industry. And
Medical Capital and Provident Royalties. industry thought-leader on retirement income when it comes to income distribution, no other
“It’s been about two years since these two distribution and building resources to help broker-dealer comes close. I see only great things
private placements began to unravel and entan- advisors specialize in this important industry ahead for Securities America, for you and for
gled Securities America in one of the biggest trend,” he said. “What we created is, bar none, your clients. I’m glad to have all of you on board.
challenges we’ve faced in our 27-year-history,” the most comprehensive income distribution You don’t want to miss out on being part of
Nagengast said. “Like any other challenge we’ve platform in the financial services industry, and it shaping the future of the industry’s most progres-
had, we worked our way through it and learned just keeps getting better.” sive, innovative and intelligent broker-dealer.”
from it. I believe that ultimately we will be a Financial Planning magazine recently ranked Lou Holtz then took the
stronger company for having weathered this.” Securities America seventh among independent stage, delivering a “Game
Nagengast went on to discuss the sale of broker/dealers based on 2010 revenues, Plan for Success” message
Securities America by parent company Nagengast said, but simply getting bigger isn’t that underscored Nagengast’s
Ameriprise Financial. necessarily the best measure of success. comments.
“We are in an excellent position to move on Monday’s focus will be on Securities America’s “There’s a rule of life: you’re
to the next chapter,” he said. “The sale process ease of business projects and the 50+ technology either growing or you’re dying,”
is moving quickly, and we expect to begin enhancements made so far this year, including Holtz said. “A tree is growing, LOU HOLTZ
meeting with prospective buyers when we get Online Account Setup, the new Account or it’s dying; so is a marriage; so is a person. It
back from the conference, with a keen focus on Servicing Tool and an upgraded reports engine. doesn’t have a thing to do with age. There’s no age
finding a new ownership structure that creates Tuesday’s conference focus will be on Business restriction on dreams. But growing or dying has
the least disruption to you and your clients.” Growth. The company’s vanguard growth pro- everything to do with trying to get better.
Nagengast announced the members of the gram, Next Level – Building the Million Dollar “When you maintain, you’re dying,” he
newly created Advisor Committee, which will Practice, has a current class of 22 advisors who continued. “You never have any ideas. You never
provide feedback on select aspects of the new have placed $14 million in SAA fee-based pro- have any enthusiasm. You never have a reason to
ownership process. The Advisor Committee grams since their program start in January 2011. celebrate. I finally realized I wasn’t tired of coach-
members in alphabetical order by last name are: “A randomly selected comparison group of ing. I was tired of maintaining. The more success-
Nate Bergeland, Bob Binn, Chuck Blossom, advisors placed $5 million into SAA fee-based ful you are, you have to make sure you don’t just
Jack Connealy, Arthur Cooper, John Egan, programs during the same period, meaning maintain. You have to ask, ‘How can I get better?’
John Jenkins and Gregg Lipsitz. our Next Level advisors are outpacing the That’s why dreams are so important – because that’s
“We’ve mentioned before that key senior comparison group by 180 percent,” Nagengast where you’re trying to go.”
– Natalie J.S. Hadley
NextPhase™ University Prepares Future Income Distribution Specialists
Training programs help advisors turn concepts into real-world client acquisition opportunities.
S
ecurities America believes so strongly in the importance of retirement The NextPhase resources will help you:
income planning – both for clients to prepare for the distribution phase } Embrace a time-segmented distribution strategy in your practice.
and for advisors to best serve the needs of those clients – that it offered
} Understand the complexities and solutions for constructing livable
its NextPhase University as the only pre-conference session at this year’s
retirement distribution solutions.
national conference. More than 70 advisors attended the session.
If you missed the pre-conference workshop, plan to attend TODAY’s NextPhase } Approach clients and prospects to discuss time-segmented distribution solutions.
Income Distribution Client Planning Process session at 1 p.m. in Salon 7. This } Learn the full capabilities of the NextPhase platform on Managed
one-hour session offers an overview of what you need to specialize in retirement Opportunities®, which allows you to build, implement and manage
income distribution planning. The 12-week NextPhase™ Coaching Program, the process all in one place.
that starts Sept. 1, provides a great follow up to today’s client planning session,
} Learn how to select the best product for each client’s unique retirement solution.
guiding you on implementing processes and tools we’ve created for advisors.
Securities America will be taking the one-day NextPhase University on the } Create a branding plan to become recognized as a retirement income
road for regional events in July, August and September. Watch your daily e*Star distribution specialist in your practice’s region or market.
email for dates and locations. } Create a marketing plan to tap into the huge Baby Boomer opportunity.
The NextPhase Coaching Program includes bi-weekly, one-on-one } Structure your internal workflows to support income distribution planning
coaching sessions, implementable tools and in-depth training from our client service.
experts in income distribution planning. continued on page 11
6. Daily StarTHE
Conveniently Earn Your CE & Complete 2011 Firm Element
Each year the National Conference is ideal to easily complete many compliance and regulatory CE requirements.
T
his year’s National Conference is education requirement off your to-do list the By attending this session, advisors will have
committed to helping advisors easy way – by attending both Firm Element completed the FME 111 Anti-Money
conveniently earn needed continuing Continuing Education sessions here at the Laundering Training. This session has been
education credits. With more than National Conference. approved for one CFP® and one PACE®
30 different sessions offering continuing The first session will be Monday from 8 a.m. continuing education credit. This session is
education credits, you are sure to leave the to 9 a.m. in the Grand Harbor Ballroom South also approved for one Nebraska state
conference with a wealth of knowledge. You can and will feature Ryan LaFountain, Securities insurance continuing education credit.
also get the 2011 Firm Element continuing America’s anti-money laundering analyst. The second Compliance Continuing
Education session will be Tuesday from
11:30 a.m. to 1 p.m. in the Grand Harbor
Ballroom South and will feature Kevin Miller,
Securities America vice president, chief
compliance officer and deputy general counsel,
and a panel of industry experts. By attending
this session, advisors will have completed
three of the online courses: FME 112
Prospecting and the Initial Client Meeting;
FME 113 Managing Ongoing Client
Relationships and Suitability Considerations;
and FME 114 Professional Responsibility
and Conduct. This session has been approved
for one-and-a-half CFP® and one-and-a-half
PACE® continuing education credits.
To receive full credit for completing these
courses at the National Conference, advisors
must scan their conference badge in and out at
the session. Advisors can attend one or both
courses and receive the corresponding Firm
Element credit for each, or attend both
sessions and fulfill their total Firm Element
requirement for 2011. By attending both
sessions, advisors will fulfill their 2011 Annual
Compliance Meeting requirement, although
branch managers may require advisors to
attend an additional compliance meeting to
receive information particular to the branch.
The attendance information from National
Conference will be uploaded to the Learning
Management System (LMS) on e*Office, and
the appropriate items will show as completed
on those systems. The Compliance Max system
will be updated to show the annual compliance
meeting requirement as completed for those
advisors who attend both of the national
conference sessions.
Advisors who are unable to attend one of
the sessions at National Conference will need
to complete the corresponding courses online
through the Learning Management System
(LMS) on e*Office for Firm Element. Courses
must be completed by Oct. 31, 2011.
Advisors who have a regulatory element
requirement for 2011 must still complete the
Firm Element conference sessions or courses.
The firm element and regulatory element are
two separate FINRA requirements.
Please note: Insurance continuing education
credits may not be applicable in all states.
– LisaJo Crawford
7. Focusing on NextPhase™ Ease of Business & Practice Growth
,
Income distribution pre-conference sessions and an upbeat opening night kick off this year’s National Conference.
NextPhase™ University – Retirement Income Distribution Planning Pre-Conference Education Session
More than 70 advisors learn about time-segmented retirement income planning from Zach Parker, Securities America’s resident expert.
Income distribution is becoming vital to advisors’ practices, so NextPhase™ University was this year’s sole pre-conference focus.
Emcee Kirk Hulett Welcomes All Securities America CEO Jim Nagengast Opening Night Keynote Speaker Inspires
The conference opens with information, Jim’s passion for advisor success shines Famous coach and television sportscaster
education and Kirk’s trademark wit. as he kicks off this year’s conference. Lou Holtz drives home the keys to success.
NextPhase™ University Attendees Enjoy Saturday’s Luncheon If You’re Not Growing, Then You’re Dying.
Breaks provide time to dine and discuss what advisors are learning. A packed opening session embraces keynote Holtz’s philosophy.
8. Daily StarTHE
Simplify Advisory Business with New Unified Managed Account
Securities America Advisors adds a fourth option to the Managed Opportunities platform to meet advisor needs.
O
ne client registration, one account, president of business development. “Working For practices using an advisory approach, the
one set of paperwork and one 1099 – with Envestnet, Securities America has taken creation of a UMA offers a way to streamline
that’s the simplified account structure the UMA strategy one step further by develop- account maintenance and management beyond
advisors can gain with the new ing a UMA that brings mutual fund wrap strate- consolidated reporting already available with
Managed Opportunities® Unified Managed gists into one account. No other firm does that.” Securities America’s Managed Opportunities
Account (UMA) from Securities America. According to Envestnet, UMAs are one of the and Managed Opportunities Advisor Directed.
“UMAs were originally designed as a way to fastest growing investments in the industry. By Rather than separate brokerage accounts for
bring multiple separate account managers into 2013, an estimated $327 billion in client house- each mutual fund wrap or separate account wrap
one account,” said Dennis King, senior vice hold assets will be managed through UMAs. portfolio selected, advisors can complete one set
of client paperwork to open one account.
With the UMA’s open architecture, advisors
can have multiple investment types and use
multiple managers and portfolios. The Managed
Opportunities platform lets advisors build their
own models that can be saved and applied to
multiple client accounts, making it easy to
implement portfolio adjustments, such as asset
allocation or manager changes, to all accounts
associated with a model. With a UMA,
changing managers while maintaining the
model for the account has been simplified.
Advisors can create their own models by
choosing any of the separate account wrap or
mutual fund wrap portfolios on the Managed
Opportunities platform, which includes tools
that will make recommendations to help
advisors determine the appropriate asset
allocation model for their client. The minimum
for each model is calculated based on the
investment products or portfolios used, their
required minimum and the allocation to the
product. The asset class allocation with the
highest required minimum sets the minimum for
the overall model, and can be as low as
$150,000. Envestnet acts as the overlay
manager, conducting trades and rebalancing as
directed by the third-party manager or the
advisor, saving the advisor time.
“The ability to combine multiple asset types
and multiple managers into one account, with
one set of paperwork and one 1099, will save
advisors a great deal of time, giving them more
time to spend with clients,” King said. “Advisors
who have delayed converting their practice to a
fee-based model because they perceived it as too
much work have no reason to delay any longer
with the Managed Opportunities UMA.
We know regulatory changes regarding Class C
shares are coming, which makes it even more
important that advisors take advantage of the
simplicity of the UMA.”
Managed Opportunities UMA provides the
same advisor benefits that have made the
original Managed Opportunities program one of
the fastest growing at Securities America
Advisors. The client profile and suitability
questionnaire helps advisors choose an
appropriate asset allocation strategy. Portfolios
and investment policy statements – customized
to an individual client’s securities restrictions,
tax concerns and cash management needs – can
continued on page 9
9. Specifically for Assistants, Staff, Office Managers and More
The Ideal Assistant Track is designed to help all of your practice’s staff maximize efficiency and effectiveness.
Assistants can also learn from attending 1:00 p.m. to 1:50 p.m.
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very year, Securities America invites
assistants to accompany advisors to the conference sessions outside the Ideal Assistant Your Disaster Recovery and
Connect! National Conference to learn track. Assistants are encouraged to attend all Emergency Client Contact Plan
client service, team management, other sessions at the conference to increase their Do you have a plan if a disaster hit your office,
personal productivity, staff career paths, overall knowledge of the industry, allowing them whether a fire, tornado or hurricane? We all
workflow analysis and marketing. The Ideal the opportunity to better support advisors and to like to hope this will never happen to us, but
Assistant Track on Sunday is built specifically create a well rounded office. Assistants who what if it did? Could you quickly recover,
to meet the needs and concerns of all levels of attend National Conference also gain hands-on reassure your clients and keep down time to a
assistants – advisor assistants, professional staff, experience using Securities America’s latest minimum? This session will cover the basics
to putting in place a well-thought-out disaster
recovery plan, as well as a strategy you can
enact to contact clients quickly in case of
“Securities America has long an emergency.
Laurie Burkhard, Senior Business Consultant
been a leader in providing training
2 p.m. to 2:50 p.m.
specifically for assistants and Leading and Managing People
How do you get people to follow your lead?
office managers, based on the Your success depends upon your ability to
influence the actions of others. Leading and
belief that behind every successful Managing People gives you practical tools and
frameworks that help you lead more effectively
advisor is a talented support staff.” to achieve the results you need. Learn
proactive, proven techniques for setting job
KIRK HULETT expectations, coaching employee performance,
providing constructive feedback, and taking
office managers, etc. These six sessions provide technological tools and learn how to use software corrective action, while maximizing employee
a wealth of practical and implementable ideas, and other programs in-depth. With nearly 100 productivity and job satisfaction.
tips and tools for assistants and office managers assistants attending the conference each year, the Nicole Cummings, Director of Training and
to take back to the office and apply to their opportunities to connect with and learn from the Human Resources
advisor’s practice. experiences of others are massive. Assistants will
“Securities America has long been a leader in leave with numerous ideas they can implement 3:30 p.m. to 4:20 p.m.
providing training specifically for assistants and into the daily operations of their practices. Making Complicated Tasks Simple
office managers, based on the belief that For staff who can’t attend the National Using Checklists
behind every successful advisor is a talented, Conference or want to further expand their Based on the bestselling book, Checklist
supportive staff,” said Kirk Hulett, Securities skills, Securities America offers Assistant Manifesto, this session will discuss what
America senior vice president of strategy and University, which will be October 5-6 at checklists can do and what they can’t do, as
practice management. “For more than a the Hilton Omaha this year. Assistants well as which tasks in your office are a must
decade, Securities America has included the are also encouraged to participate in the for checklists!
Ideal Assistant track at National Conference, e*Certification program for assistants, available Laurie Burkhard, Senior Business Consultant
which over time has evolved to include online through the e*Office Educenter.
specific sessions for office managers, designated 4:30 p.m. to 5:20 p.m.
principals and associate advisors.” 8:00 a.m. to 8:50 a.m. Invest Wisely! Select the Right CRM
What You Need to Know About Compliance for Your Practice
Compliance is a constant in any financial You undertake important tasks and work hard
services office. Find out what you should be each day to be successful in the long run,
doing to help protect the practice and ensure including: A) delivering great service to
New UMAs (continued from page 8) clean audits. clients, B) Communicating thoroughly and
be created online in about 10 minutes. Adam Proskovec, Director of Surveillance taking great notes, and C) protecting your
All required account initiation and investment (Roger Verboon, moderator) practice. Selecting an appropriate Client
documents can be downloaded and printed from Relationship Management (CRM) system to
within Managed Opportunities, and advisors 11 a.m. to 11:50 a.m. support “D) All of the above” is crucial. Attend
have online access to rolled-up reports, updated Best Practices from Your Colleagues this session to learn more about existing
daily, on assets at a household level, regardless You spoke and we listened! Attendees want to CRMs, and how to make an informed decision
of different registrations or money managers hear best practices from other offices and how and invest wisely in the technology you use to
used. The UMA offers even more streamlined to implement them. Come hear from a panel of reach your next level of success.
reporting than the consolidated reports top assistants on how they make their office Chris Kirby, Practice Management Consultant
available on the Managed Opportunities run smoother, keep clients happier and become
separate account program. invaluable to their advisor. As a long-standing leader in Practice
Learn more at Managed Opportunities Sales Assistant Advisory Board and Management programs, tools and services, we
Unified Managed Account TODAY at 3:30 p.m. Cultivating the Assistants Group members are confident these sessions will serve your
in Asbury Hall D. (Laurie Burkhard, moderator) practice well!
– Natalie J.S. Hadley – LisaJo Crawford
10. Daily StarTHE
Finding Returns in a New Global Economy Changes Perspectives
Iron Point looks at portfolio construction themes as the U.S.’s economic influence declines.
T
he United States has enjoyed a long why investors who became more conservative
history of leading the world economy, following the 2008 market decline will find it “Today we have to
but the realities of the new global more difficult over the next few years to earn a look at the economy
economy will make the U.S. a smaller rate of return necessary to meet their goals.
player and create opportunities for the rest of Spitzmiller will start with a look at the market
globally. There are
the world, particularly in emerging markets. In and economic environment over the past opportunities in emerg-
his session Portfolio Construction in the Years few years, and the risks that could derail the ing markets and the
Ahead, Iron Point Capital Management Chief economy, causing some asset classes to perform
Investment Officer Jeff Spitzmiller will look at better than others.
U.S. is becoming a
smaller player.” JEFF SPITZMILLER
“I think that over the next five years, the
equity markets will be below their historical
returns and that rising interest rates will impact
bond prices,” he said in an interview. “Inflation
is the wild card.”
In addition, the global economic picture
continues to evolve, Spitzmiller said. “The
United States was at the forefront of the world
economic environment in the past. Today, we
have to look at the economy globally. There are
opportunities in emerging markets, and the
U.S. is becoming a smaller player.”
“Advisors can’t rely on a static buy and hold
strategy any more,” Spitzmiller said. “They will
need to look for opportunities to add less
traditional products, like exchange traded funds
and open-ended mutual funds in the alternative
space, to diversify portfolios beyond equities
and bonds to increase returns. The way advisors
have been constructing portfolios may not be
the way to do it now. The markets may be
almost double the lows of March 2009, but the
markets and the economy are not the same as
they were before the meltdown.”
Iron Point, which is a sister company to
Securities America, manages objective-based
portfolios allocated for long-term investing
using a strategic allocation with a tactical over-
lay. The strategic approach uses a diversified
long-term neutral allocation customized for the
client. The tactical overlay aims to improve
risk-adjusted rates of return by taking advantage
of changing market conditions.
The company’s investment methodology uses
both top-down and bottom-up analysis. The
top-down analysis examines the macro view of
the markets, while the bottom-up analysis
narrows in on the individual securities to
generate a balanced perspective of the current
state of the economy, as well as identify trends
that may occur.
Don’t miss this opportunity to learn more
about economic and market trends in the
coming years, and how those factors will affect
portfolio construction. Portfolio Construction
in the Years Ahead will be held TODAY at
4:30 p.m. in Asbury Hall D, and is worth one
hour of continuing education credit for the
CFP® and PACE® designations.
– Natalie J.S. Hadley
11. Shift from C Shares to Advisory Helps Advisors Avoid 75% Pay Cut
Securities America’s new coaching program assists advisors in transitioning to a fee-based practice.
helps advisors develop a transition plan. the shares being out of the contingent deferred
I
f you knew a situation was brewing that
would cut your income by 75 percent, would Delivered online in five sessions, the 12-week sales charge (CDSC) period.
you take steps to mitigate the impact or program includes bi-weekly individual coaching “Making the transition to a fee-based practice
avoid it all together? Advisors who rely sessions, implementable tools and training from can appear intimidating to advisors, but the
heavily on trail commissions from mutual fund Securities America experts in fee-based business. tools, processes and resources Securities America
C shares will face that very situation if the Session topics include creating a fee-based provides help advisors approach this change
Securities and Exchange Commission (SEC)
moves ahead with its proposed rule to cap 12(b)-1
fees at 25 basis points (bps).
“No business can survive a 75 percent cut in its “Over the past 17 years, SAA has
revenue,” said Jeremy Robson, Securities
America Advisors’ director of advisory services.
“Advisors need to prepare now for the coming
helped hundreds of advisors transition
rule changes by analyzing their business and how to a fee-based advisory practice,
a true fee-based advisory approach can not only
preserve that income but expand it.”
Robson and Erick Lindewall, SAA director of
and I don’t know of any advisors
advisory sales, will present today’s session,
Developing a Plan to Transition Your C Share who have regretted it.”
Business to Advisory at 2 p.m. in Asbury Hall A.
“In addition to avoiding the potential loss JEREMY ROBSON
of income due to the fee cap on C shares,
transitioning to an advisory structure allows the business plan, pricing, investment manager and gradually and systematically in a way that makes
advisor to provide a deeper level of service to platform selections, the client communication sense for the advisor, their staff and their clients,”
clients,” Robson said. “That can mean gaining plan (with scripts) and workflows. The next Robson said. “It does take time to make the
additional assets the client may currently hold JumpStart Advisory Coaching Program session transition, and there’s no getting around some of
elsewhere. An advisory approach also makes the begins Oct. 4. For more information and to the work required, but clients and advisors bene-
advisor’s practice more valuable. An advisory register, visit the Advisory Business tab of the fit in the long run. Over the past 17 years, SAA
practice typically sells for one and a half to two e*Office website and click on the JumpStart has helped hundreds of advisors transition to a
times revenues; a practice based on C shares Advisory Coaching link. fee-based advisory practice, and I don’t know of
typically sells for 50 percent of revenues or less. SAA has other initiatives planned that will any advisors who have regretted it.”
Advisors buying books of business are looking for make transitioning from C shares to advisory The SEC has stated it plans to return to
advisory-based practices.” business even easier, including a small account finalizing and implementing new rules on
Clients who move from mutual fund C shares program to accommodate investors who don’t mutual fund fees this summer. You don’t want to
to an advisory relationship can access a broader qualify for normal account minimums, and face a potential 75 percent reduction in income.
spectrum of investments, Robson said. Around agreements with mutual fund providers to allow If you have never considered a move to fee-based
5,000 mutual funds, separate account models, share class exchanges to eliminate capital gains business, or you’ve considered it before and found
mutual fund wrap portfolios, and exchange exposure from the liquidation of C shares. Eleven reasons not to change, plan to attend today’s
traded funds can be accessed through various fund companies so far allow tax-free (non- session at 2 p.m. in Asbury Hall A.
SAA programs. By comparison, around 2,000 reportable) conversions to advisory class shares, – Natalie J.S. Hadley
mutual funds offer C shares. including American Funds, Invesco AIM,
Earlier this year, SAA piloted its new Fidelity, Allianz, Oppenheimer and Franklin
Templeton. All conversions are dependent on
Daily Star
JumpStart Advisory Coaching Program, which
THE
NextPhase University (continued from page 5)
Advisors who complete NextPhase University at National Conference or the 12-week NextPhase
Coaching will have access to Securities America’s new Income Distribution Desk. Publisher
“This training is a basic necessity for implementing retirement income distribution in your practice,” Securities America Marketing Department
Parker said. “There are a lot of variables, however, as advisors get into creating plans for clients.
We established the Income Distribution Desk to support advisors in building income distribution Editor and Lead Writer
proposals and plans for clients. Completing NextPhase University or the NextPhase Coaching program Natalie J.S. Hadley
is a prerequisite for accessing the Income Distribution Desk.”
Securities America experts staffing the Income Distribution Desk will create the proposal in the advisor’s Staff Writer
system using a completed client profile sent by the advisor, and will consult with the advisor on the initial Lisa JoDean Crawford
portfolio plan. A printed and bound copy of the proposal and plan, including specific recommended
investments, is shipped to the advisor. Advisors meeting all of the prerequisites will have access to these Graphic Design, Photography
services at no charge. Editing, Production and Distribution
“The Income Distribution Desk helps the advisor focus on relationships, while we act as the back office Derek Layne Peterson, MBA
or paraplanner,” Parker said.
Sign up for the NextPhase Coaching Program that will be starting September 1, by contacting Teri Heim Securities America, Inc., Member FINRA/SIPC. Securities America Advisors,
Inc., an SEC Registered Investment Advisor. Copyright June 2011,
at theim@saionline.com or 800-747-6111, ext. 5305. Securities America. All Rights Reserved. For Broker/Dealer Use Only.
– Natalie J.S. Hadley