Writing Sample: "Don't Get Stuck Paying Extra Taxes"

The subject line "Don't Get Stuck Paying Extra Taxes" compelled me to open the e-mail.

That's the power of a subject line that tells the reader "what's in it for me."

I opened the latest e-newsletter from Westchester Mortgage even though I was pretty sure I'm not making any dumb tax mistakes with my house. I was right. The article warned readers to be careful when using money from a retirement account to buy a house. Luckily, I don't have to worry about that. I've been in my house more than 15 years.

Try to put yourself in your readers' shoes when you compose an e-mail subject line. Your effort could increase your readership.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.Wr

"Is Spelling Overrated?"

Direct marketing guru Bob Bly recently asked "Is Spelling Overrated?" on his blog.

I don't think so. Good spelling won't win over new clients. But sentences rife with misspellings may make the reader wonder if you're similarly sloppy with their money.

It's one thing to have typos in the quick emails you send to your employees, as Bly points out. Quite another to tolerate them in formal communications to clients and prospects.

People often write "it's" where "its" should be. "It's" is short for "it is." "Its" is the possessive form of "it." This trips up many people because of the exception to the rule that you form a possessive by adding an apostrophe followed by the letter "s."

English is a challenging language for spellers. Get someone else to proofread your most important written communications.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Tips for writing case studies

Case studies can be powerful tools for the wealth management professionals who're allowed to use them.

A case study typically starts with a presentation of a client problem--something that's causing the client pain. The problem is followed by the solution, and then the client results. When prospective clients recognize themselves in the problem, you've grabbed their attention.

In "How to Write a Case Study" (available for download without registering) consultant Toby Younis lays out the steps for writing a case study. If you'd like to try doing it yourself, you may find his list of questions on page 12 particularly helpful.

However, don't write an investment management case study. That falls under the SEC's prohibition against testimonials.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Feeling emotionally connected to your client can cut both ways

Feeling a connection with your clients can be a double-edged sword. It can fuel your personal satisfaction. It can also lead to burnout.

This is according to"Financial Feeling: An Investigation of Emotion and Communication in the Workplace,"an academic study by Katherine I. Miller and Joy Koesten, which appeared in the Journal of Applied Communication Research. The article was based on a survey answered by almost 300 financial planners.

However, the study also found that "the most effective and satisfying relationships for financial planners came when they truly cared about the client and saw themselves in a relationship with the client. These connections--when genuine--did not cause burnout."

Here are the authors' tips to help you avoid burnout:

• Understand that financial planning involves relationships as much as it involves numbers.
• Try to understand the relational needs of your clients through active listening and taking the perspective of the other.
• Develop a stance of empathic concern in your client relationships where you feel for the client but do not feel with the client.
• Realize that relationships exist at different levels, and it is sometimes okay to "paste on a smile" if it helps to accomplish the goals of you and your client. At the same time, it is important to remain true to core convictions about your profession and your relationship with clients.
• Work to understand norms of interaction in different organizational and national cultures, and interact in ways appropriate for those cultures.
• Rely on others for social support when dealing with stress. Coworkers who understand your job are particularly good at giving advice or just providing a listening ear.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Six tips for listening better to your clients

In my last post, "The Client Relationship Autopsy," I wrote about how to analyze client relationships turned sour. But if you'd listened better to your clients, perhaps they'd still be with you.

Consider applying the six tips for better listening described in "What?" a New York Times blog post by Marci Alboher.

Tip number six may be especially challenging: "Do not interrupt, even if you think you’re going to forget what you want to say." Instead, jot down a note, so you can circle back to your idea, if it's still appropriate later.

One of the tips suggests nodding to show you're listening. Nodding was essential when I lived in Japan for that very reason. If I kept completely still and silent, my conversation partner would have stopped talking because she or he would have assumed I wasn't listening. But in the U.S., you should be careful about nodding. Here, nodding suggests that you agree with the speaker.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

The charitable trust that's best in a low-interest rate environment

Now is a great time to create a charitable lead trust, assuming it would further your client's estate planning goals.

That's according to Nadia Yassa, Director of Estate and Gift Planning for the Boston Foundation. She spoke on "Tax Benefits of Charitable Trusts" to the Boston Security Analysts Society on May 13.

Why now? Because when interest rates are low, the IRS will value the non-charitable remainder interest at a lower value, using the IRS discount rate in effect when the trust is established. That's regardless of what the actual value is when the transfer occurs. The bottom line: Ultimately, more of your assets will reach your beneficiaries because any growth in the trust above the discount rate passes free of gift tax to heirs. As Yassa explained, "A low Section 7520 discount rate allows donors to 'freeze' estate and gift values to minimize overall transfer tax liability."

A non-grantor charitable lead trust provides income to one or more qualified charities for a preset period. At the end of that period, the assets of the trust transfer to non-charitable beneficiaries. People often use this kind of trust to contribute to charity, while ensuring that their assets end up with family members at a lower cost in taxes.

On the flip side, low interest rates mean this is the least favorable time for creating a charitable remainder trust. However, in any case, taxes should not be your only consideration when establishing a charitable trust.

Want to learn more about planned giving, including charitable trusts? Check out the Planned Giving Design Center, suggested Yassa. "It’s a free on-line resource sponsored by the Boston Foundation. Go to www.tbf.org and click on the Professional Advisors section/Planned Giving Design Center. Advisors can register and have access to technical outlines, articles, rulings, news reports, and receive periodic emails with legislative updates, as well as the Section 7520 rate as it is announced each month by the IRS."



_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

"The Client Relationship Autopsy"

You've probably lost at least one client. But rather than chalk it up as inevitable, try to learn why your client left you.

"The Client Relationship Autopsy" proposes a process consisting of:

1. Talking to your team
2. Talking to your client
3. Preparing a report

"The process will help you choose wisely when it comes to adding new clients, and it will help you glean insights for improving existing client relationships," says Leo Bottary, the ad agency account director who wrote the article. He goes into detail with suggestions for each step.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Morningstar Market Barometer, 2003-2007

Want to show your clients how equity styles and sectors perform differently over time?

The newly released 2-page Market Barometer from Morningstar can help.


_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Does your auto mechanic communicate better than you?

"Nearly three-fourths of the 1,203 adults polled said their auto mechanic uses clearer English than their financial professionals," according to "Financial Jargon: You Just Don't Understand" by Cathie Gandel in AARP Bulletin Today.

Are you one of those confusing financial pros? And are your clients suffering as a result?

Learn more about the results of a survey by AARP Financial about consumer understanding of financial jargon.

"Interruption vs. Self-Service Marketing"

I'm following up my post on how financial advisors are using LinkedIn. Raising your visibility by using LinkedIn is an example of "self-service marketing," which I read about recently in "Interruption vs. Self-Service Marketing" on marketer Bob Bly's blog.

He quotes an article from DM News: " 'Self-service marketing is all about putting content where people will find it,' writes Rapsas. 'It makes sense to go where the customers are.' " Bly contrasts this with traditional marketing which interrupts people when they're not looking for it.

Bly makes an interesting point down in his comments:

"My rule of thumb: self-service marketing works with products which consumers actively search for information (including pricing) on — for instance, installing solar panels on the roof of your home. Interruption marketing works with products people want when they hear about but weren’t thinking about beforehand — e.g., designer handbags, a home-study course on becoming a locksmith."

It seems to me that people actively search for financial or investment advice, so maybe self-service marketing has a future in this field. What do you think?


_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

“The Top Four Investment Strategy Challenges for Financial Advisors”

One year ago it seemed as if the good times would never end. Today, many investors go to bed wondering what bad news will greet them in the morning. In this volatile environment, Advisor Perspectives asked financial advisors to identify their greatest investment strategy challenges.

Continue reading my article, “The Top Four Investment Strategy Challenges for Financial Advisors,” in Advisor Perspectives.

Morningstar praises Putnam's "plain English" and provides tips so you can write in "plain English," too

Writing in "plain English" is easier said than done. So I was intrigued when Morningstar singled out Putnam for "plain English" prospectuses in "Letter to SEC: Short Fund Prospectus Helps Shareholders."

For example, the author liked this description of Putnam Voyager's strategy: "We invest mainly in common stocks of U.S. companies, with a focus on growth stocks. Growth stocks are issued by companies that we believe are fast-growing and whose earnings we believe are likely to increase over time."

Here are some "plain English" writing tips I extracted from the Morningstar article:

1. Get specific about strategy. Instead of describing your investment objective using terms like "capital appreciation" that don't mean a lot to ordinary folk, get specific about "the types of securities the fund usually owns and the criteria a fund manager uses when buying and selling securities."
2. Use graphs.
   
3. Put returns in context by comparing them with the fund's benchmark. Don't make your readers struggle to understand returns without any basis for comparison.
   

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Morningstar gets the WIIFM

Before your readers dig into your written materials, they want to learn the WIIFM--"What's In It For Me?" If you can't convince them they'll get something out of it, they may not read it.

Morningstar's newsletters do a nice job of communicating the WIIFM. Consider, for example, this title of a Morningstar Fund Spy article: "Dissecting the Ultrashort Bond Fund Mess: What should you do if you own one of these funds?" If you're in a "mess," wouldn't you want to learn what your next step should be?

Here's another example: "Take the Greatest Advantage of the World-Stock Group: There are many good global funds, but you still need to choose carefully." The title promises not only that you can maximize your gains, but you can also avoid pitfalls.

Notice how both titles use the text after the colon very effectively. I often advise my clients to use subtitles and subheadings--rather than just titles and headings--to draw more readers into their investment commentary and other writing.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

How financial advisors use LinkedIn to boost their visibility

"Boosting my visibility" is the number one reason why financial advisors are participating in LinkedIn (LI). LI profiles and answers both deliver benefits. But tread carefully, or your compliance department—or even the SEC—could nail you.

LinkedIn profile makes you easier to find—and track

You’ll be easier to find in a Google search if you have an LI profile. "By adding connections, you increase the likelihood that people will see your profile first when they’re searching for someone to hire or do business with. In addition to appearing at the top of search results (which is a major plus if you’re one of the 52,000 product managers on LinkedIn), people would much rather work with people who their friends know and trust." as Guy Kawasaki said in "Ten Ways to Use LinkedIn." With more people looking online for services, that’s critical. At a minimum, your profile should include your name, title, and location, but you can beef it up with details, including a link to your website.

Rob Schmansky, a Detroit, Mich.-based wealth manager, likes that LI shares his profile updates with potential clients, friends, and family who are his LI connections. This may put his name in front of them when they can make a referral or need financial advice themselves. He makes it easy for his network to find his profile by providing a link in his email signature.

LinkedIn Answers let you display your expertise—and learn

LI Answers let you respond to questions posed by others and ask your own. The “personal finance” category will probably interest the greatest number of financial advisors. However, check out other categories , too.

Carlton Johnson, an independent advisor in the Charlotte, N.C. area, says “As I provide answers to questions, potential clients are always reading answers. ‘Best answers’ are great testimonies to technical prowess; however, even good and unrated answers can clue a potential client on how you are currently viewing finance world and particular situations relevant to them.”

Some financial advisors would submit answers even if there were no prospect of gaining clients. One advisor, who asked to remain anonymous, said he gives answers to help prevent individuals from making common mistakes.

Andrew Baechler of PWL Capital in the Ottawa, Canada area likes Answers “as a gauge to see what issues are currently top-of-mind with investors.” Johnson also sees Answers as an educational resource. “LI serves as a platform to exchange ideas and find solutions to questions that my clients and others may have about difficult financial situations.”

As an occasional writer for financial magazines, I see another benefit for advisors. You can connect with reporters. Journalists are increasingly using Answers to find sources to interview for stories. Being quoted in articles can enhance your credibility.

Watch out for compliance!

Pay attention to your organization’s compliance rules. One advisor told me that even something as basic as her LI profile had to be approved by the compliance department. Your firm may be more flexible. “My compliance department allows me to post on LinkedIn without their approval, so long as I don’t provide specific investment guidance,” says Baechler.

Some advisors may be crossing the line that forbids testimonials for registered investment advisors. Check with compliance before you accept a Recommendation through LI.

Are you an advisor who’s leveraging LinkedIn? Leave a comment about how it’s working for you.

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Your privacy policy can become a marketing document

ING Direct's e-mail about their privacy policy made me feel good about being their customer. Why? Because they made me feel they value communicating clearly with me.

Here's how the e-mail started:

"Below is some important information that we're required to send you each year. It seems like a lot of legal stuff, but we promise, it will only take a few minutes. Give it a look."

Also, their opt-in policy made me feel that they care about me more than they care about cross-selling.

"Did you know our Privacy Policy EXCEEDS government standards? In 1999, Congress passed a law requiring financial institutions to give Customers the ability to "Opt-out" of information sharing. At ING DIRECT we went the extra mile to provide you with an "Opt-in" Privacy Policy, which means we won't share your information with any other company or partner unless you ask us to."

Are you missing marketing opportunities by writing your legally required disclosures in legalese?
_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Do your performance reports send the wrong message?

You tell your clients to think long-term. But are you sending them the opposite message?

Here's one manager's take on the topic.

"...we realized that we lectured our clients about long-term performance and investing to meet their goals; however, our reporting focused their attention on short-term returns and market performance. Today, we do not provide any performance for periods less than one year, and we benchmark against CPI, not the S&P 500, to better frame our clients’ understanding."

That's according to Harold Evensky in"The Rational Wealth Manager" (CFA Institute membership may be required to access this article).

Would you consider following Evensky's lead?

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Mindmapping for financial advisors

"Mind Mapping: Some financial advisors find mind mapping software helpful in analyzing issues," an article by Joel Bruckenstein in Financial Advisor (April 2008) caught my eye because I recommend using mind mapping to help organize your articles in my presentations on "How to Write Investment Commentary that People Will Read."

I draw my mind maps using pencil and paper. Bruckenstein says mind mapping can be even better if you use software. He particularly likes Mind Manager Pro 7, which offers a 21-day free trial.

In addition to Bruckenstein's article, you can check out Joyce Wycoff's book, Mindmapping: Your Personal Guide to Exploring Creativity and Problem-Solving, which I was introduced to by presentation coach Cheryl Dolan.

"Weathering the Downturn—with Good Communication"

I agree with the communications advice offered below. Thank you, Beverly Flaxington of The Collaborative for giving me permission to reproduce your article here.

Yes, it seems we are officially in a recession. Portfolios are shrinking—and fast. One never knows what the next day will bring in terms of rate cuts, market performance or the political climate.

What's a financial firm to do? Most people think they need to "batten down the hatches" right now. They hunker down and wish and wait for things to change. They worry about getting client calls. They worry about cutting the budget and they worry about shrinking fees tied to portfolio assets.

We've been through this before. What goes up, must come down and once it comes down, it usually goes back up again. We have historical perspective that says "this too shall pass." So, how to behave when the market isn't?

If it isn't your style to communicate when things are going well—now is not the time to stay in your style. Find reasons to reach out to your clients. Help them understand what's going on. If you are feeling concerned about market turbulence, think about the less informed client—it's a real scare to think you won’t be able to retire on time or send your kid to college next year.

If it is your style to communicate, make sure it is largely educational. Don't feel you have to justify your market-related poor returns. Explain to clients what is happening—in historical context explain what you are seeing in the market and what you are doing. Explain why you are making the investments you are and what you think clients can expect as a result. Show the clients you do have a plan and an approach. Clients know you can't control the markets, but they need to know you have a plan to deal with the volatility.

If your style performs well in a down market—tout it, loudly! We all like upside and seeing our portfolios grow, but firms that manage downside risk well look great in a down market. If you are one of them, take advantage of the timing!

Help clients think through timing. Is now the best time to begin retirement? Should they wait a bit longer? Should they look for the second home right now and take advantage of the market earlier than they planned? Should they put some other major purchases on hold? Be their partner—work with them to figure out how to manage in this environment. The down markets certainly shrink portfolios but they also provide opportunities for those willing to act on them!

It'll be tough to sell advisors on longevity annuities

Longevity annuities--annuities that kick in at, say, age 85--are going to be a tough sell to financial advisors.

That was my gut reaction when I wrote about longevity annuities on this blog. My unscientific sampling of advisors on LinkedIn reinforced that impression. They warned against the costs associated with annuities and suggested other alternatives for providing long-lived income in retirement.


Many oppose longevity annuities

For example, Tom Taylor, principal and portfolio Manager at Thoma Capital Management LLC, said "I have never recommended a longevity annuity to a client or any annuity for that matter. Building a bond laddering portfolio that invests in TIPs and US Treasury notes is a much better way to go."

Patrick Costello of Costello & Associates said, "paying a lump sum now for a benefit that won't be available for 20 years, with no interim access to the sum, predicated on the unlikely scenario that one will be alive long enough to receive a good inflation adjusted return seems like a fool's move."


Some advisors would consider longevity annuities

However, I did turn up some advisors who seemed willing to consider longevity annuities to help clients avoid outliving their assets.

"As with all insurance products, based on actuarial tables, there are winners and losers," said James C Brandon of JCB Capital Performance.

Jeff Motsco of Motsco Financial said, "Some annuities are good, some are great, and some you don't want to go near, but dismissing something based on cost without considering benefit is haphazard."

Al Aldrete of New York Life suggested that a longevity annuity is a good way to hedge the possibility that a client would live much longer than he or she expected. He said, "This is not a tool to be used with everyone. But for clients who have serious concerns about living too long (because their parents and/or Grandparents have lived into the 90's and 100's) and they are not sure about the fate of Medicare, Medicaid (MediCal in California) and Social Security, this gives them a peace of mind that they will have something."

_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

Write your own newsletter or buy a canned newsletter?

You've decided to send a newsletter to your clients. Which route should you go? Write it yourself or send a canned newsletter provided by a third-party service?

Do it yourself, said most of the advisors who responded when I posted this question on LinkedIn.


The pluses of writing your own

"Writing your own newsletter is the most timely and cost-effective method," wrote Ike Devji of The Wealthy 100.

Assabet Advisors' Lisa Phelps likes having complete control over topics. She said, "I can pick topics for which I have a particular interest resulting in an article with a bit more depth or excitement than normally found in such newsletters." Plus, she can mix in insights from her own practice.

Brian Langenberg of Langenberg & Co. said that newsletters don't require a big investment of time--just a few hours per issue in his case. Moreover, "It is a great way to reach a broad audience, give them your thoughts, and stimulate awareness." I'm sure the investment of time varies by advisor. Some would find it much more time consuming.

Another plus of writing the newsletter yourself: It gives your readers a sense of who you are, especially if you're a good writer. It helps you to create a personal connection with them.


Why choose a canned newsletter

Russell Lowry of Sagemark Consulting prefers to talk directly with his clients, so a personally written newsletter would be overkill for them. He uses a canned newsletter to stay in touch with prospects.

Assabet Advisors' Phelps understands that some advisors prefer a canned newsletter because they "lack the time or skill to write a newsletter themselves."


A newsletter is a great marketing tool

Whatever route you take, a newsletter is a great way to keep your name in front of clients and prospects. Of course, a third option is to hire a writer or editor to help you produce a polished newsletter.

What route are YOU taking? Please leave your comments.





_________________
Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.