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Boost your social media 14 |

Create a personal brand 16

|

Master the paperless office 18

ROUND TABLE

the

OFFICIAL PUBLICATION OF THE MILLION DOLLAR ROUND TABLE | MARCH/APRIL 2015

Is it time to start a new business model?

Don’t miss

Don’t miss THE 2015 MDRT ANNUAL MEETING Taking place in New Orleans, Louisiana, USA — a

THE 2015 MDRT ANNUAL MEETING

Taking place in New Orleans, Louisiana, USA — a city known for great food, music and fun.

Enjoy everything you love

about the Annual Meeting

Main Platformand fun. Enjoy everything you love about the Annual Meeting Special Sessions Focus Sessions ConneXion Zone

Special Sessionseverything you love about the Annual Meeting Main Platform Focus Sessions ConneXion Zone Plus more program

Focus Sessionslove about the Annual Meeting Main Platform Special Sessions ConneXion Zone Plus more program options, including

ConneXion ZoneAnnual Meeting Main Platform Special Sessions Focus Sessions Plus more program options, including EARLY REGISTRATION

Plus more program

options, including

EARLY REGISTRATION ENDS APRIL 18 F O R M O R E I N F
EARLY
REGISTRATION
ENDS APRIL 18
F O R
M O R E
I N F O R M AT I O N
AND TO REGISTER VISIT:
WWW.MDRT.ORG / 2015AM
MDRT Speaks Cornerstone Presentations Echo Sessions Enhance your meeting experience by becoming a PGA volunteer
MDRT Speaks
Cornerstone
Presentations
Echo Sessions
Enhance your meeting
experience by becoming
a PGA volunteer — sign up
when you register.
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you
Echo Sessions Enhance your meeting experience by becoming a PGA volunteer — sign up when you

32

32 looking FORWARD Providing individual value The focus of the strategic plan has helped us to

looking FORWARD

32 looking FORWARD Providing individual value The focus of the strategic plan has helped us to

Providing individual value

The focus of the strategic plan has helped us to maximize the benefits for each member.

O ne of the most rewarding and

challenging responsibilities of serving

on the MDRT Executive Committee

these past few years has been the strategic planning process. This process has demanded significant time and focus from current and past Executive Committee members to stay on track and implement the changes. MDRT President Caroline A. Banks, APFS, shared the five principles that guide our decision-making process in her November/ December 2014 article. I would like to share how these principles are implemented and why they are important. First, our organization has changed over the years and continues to evolve. With this growth comes the challenge of creating value for more than 42,000 individuals. We identified portions of our membership by how they use the services we provide. As you can imagine, it is difficult to narrow more than 42,000 varying levels of engagement into six distinct types. Though it was a monumental task, we believe this will help us focus our meetings, content offerings and leadership opportunities in a way that engages the maximum number of members. Through member interviews and research, we identified the following six major engagement themes:

1.

2. Resources

3. Meetings

4. Volunteerism

5. MDRT Foundation

6. Leadership

Brand

4. Volunteerism 5. MDRT Foundation 6. Leadership Brand These themes seem to fit how nearly all

These themes seem to fit how nearly all of us get the most out of MDRT. The focus of the strategic plan has helped us to maximize the benefits for each member, whether you choose to be an extremely active volunteer in the organization, or only to use the Web-based resources and read Round the Table. All of us on the Executive Committee are excited with how this process has evolved. It has helped us structure the committees, present our meetings around the world, deliver more dynamic content when and where you need it, and promote opportunities to network and volunteer with your friends and peers. Most of all, this process allows MDRT to take the demands of 42,000 members from 87 countries, speaking more than 20 different languages, and deliver a customized experience for a membership of just one: you! I am proud to serve!

All the best,

of just one: you! I am proud to serve! All the best, Brian D. Heckert, CLU,

Brian D. Heckert, CLU, ChFC MDRT First Vice President

contents

ROUND THE TABLE | MARCH/APRIL 2015 | VOL 43, ISSUE 2

PRACTICE

8

IDEAS

10

TIPS & TECHNOLOGY

12

WRITING IT DOWN Putting the process on paper gives Engrassia a roadmap to success.

14

SOCIAL MEDIA AT THE NEXT LEVEL How you can stand out from the Internet crowd.

16

BUILD YOUR PERSONAL BRAND How to create the image you portray to clients and prospects.

16

18

PAPERLESS POINTERS Two members empty out their file cabinets.

20

6 WAYS TO MAKE CLIENTS COMFORTABLE Varas focuses on adapting to the needs of senior consumers.

22

BUYING LASTING HAPPINESS Annual Meeting speaker reinvig- orated Round Table members’ passion for life insurance.

PEOPLE

24

IDEAS

26

TIME TO MAKE A CHANGE Sometimes the only way forward is starting over again.

30

PAST AND FUTURE Members in Mexico rely on the ability to adapt to changing markets.

32

‘YOU’D MAKE A GREAT AGENT’ Murphy followed a suggestion to immediate success and business growth.

34

THE DRIVE FOR COMPLIANCE AND SUCCESS How the rules of the road can guide your career ethics.

36

PLANNING WHAT’S NEXT Engel partners with a young advisor to ease into retirement.

39

Q&A Glenda Miro Antonio

26
26
WEB EXTRAS mdrt.org
WEB EXTRAS
mdrt.org

n MDRT PODCAST

Episode two on business continu- ation planning is now available at mdrt.org/podcast.

n COST OF DOING BUSINESS

The full survey is available online.

n APPLY ONLINE

To apply for 2015 MDRT membership easily, visit onlinemembership.mdrt.org.

46 “You have to make someone feel comfortable and confident in the decisions they’re making.”

46

“You have to make someone feel comfortable and confident in the decisions they’re making.”

— Micheline Varas, Page 20

INSIDE MDRT

40

IDEAS

43

DEVELOPING PRODUCTION REQUIREMENTS MDRT creates a formula that takes volatility out of numbers.

46

REFRESHED AND RECHARGED MDRT Annual Meeting promises more ideas, more connections and more takeaways.

50

MDRT FOUNDATION:

EDUCATING GIRLS IN CAMBODIA Foundation grant helps students in impoverished communities.

52

PROFITS UP, EXPENSES DOWN Cost of Doing Business Survey reveals industry averages.

12

IN EVERY ISSUE

1

LOOKING FORWARD

4

WELCOME

6

IN THE NEWS

7

IN MEMORIAM

55

TRUE TALES

56

LOOKING BACK

Boost your social media 14 | Create a personal brand 16 | Master the paperless
Boost your social media 14 |
Create a personal brand 16
|
Master the paperless office 18
ROUND TABLE
the
OFFICIAL PUBLICATION OF THE MILLION DOLLAR ROUND TABLE | MARCH/APRIL 2015
Is it time
to start
a new
business
model?

ON THE COVER

Read why four MDRT mem- bers decided to completely change their business model and learn the results of their overhauls.

COVER DESIGN BY MICHAEL DORICH

WELCOME

WELCOME

WELCOME What’s old is new again I n each issue of Round the Table , we

What’s old is new again

I n each issue of Round the Table, we have an

article we’ve nicknamed “Classics.” The idea

is that while tax laws change and regula-

tions take effect, many ideas our members have shared during MDRT’s history are still relevant, no matter if they were presented in 1927 or 2015. In the issue you’re holding, the presentation comes from the 1939 Annual Meeting. As I pre- pared the article on Page 22, I flipped through old, dusty books in search of something interest- ing and relevant for our members in 2015.

While we enjoy digging through the archives in search of material that might help you, we also want to provide timely, cutting-edge resources to help you do business in today’s world. In this issue, we have articles that explain how to create a paperless office (Page 18) and advanced tips for using social media differently than you may have in the past (Page 14). As you incorporate more technological solu- tions in your office, we are working to provide content to you in different formats. When our last issue came out, we also published the first episode of the MDRT Podcast, a new series featuring MDRT members’ advice on the issues they’re facing. With the second episode, we’re exploring the topic of business continuation planning, hearing from producers who are dis- covering the realities of succession planning. On Page 36, we feature a senior-junior advisor partnership that is succeeding at succession. You can find the first two episodes of the MDRT Podcast at mdrt.org/podcast. In April, the new MDRT website will launch, complete with a resource section to help you do business better. In written, audio and visual for- mats, you’ll find how-to advice and success sto- ries you can access 24/7. Some of those resources will be new, some “Classics,” but we’re commit- ted to ensuring you have relevant information at the push of a button — not out of reach on a dusty bookshelf. Let us know what topics we can cover to meet your needs.

Thank you for reading,

we can cover to meet your needs. Thank you for reading, Kathryn Furtaw Keuneke, CAE Editor

Kathryn Furtaw Keuneke, CAE Editor in Chief Editor@mdrt.org

14
14
14
14

Learn new ways to use social media to develop relationships and market your brand in “Social media at the next level.” DAVID M.

ETHELL, LUTCF, and KEN IBUKI, interviewed

members about targeting their audience and fo- cusing their message. Ethell is a 13-year member from Camarillo, California. Ibuki is a 21-year MDRT member from Nagoya, Japan. They are both members of the Client Strategies Committee. Contact Ethell at david@deifs.com and Ibuki at kenibuki@plum.ocn.ne.jp.

16
16

DEDDY KARYANTO, CFP, QWP, shares

his tips on how to be successful in business by building a name for

yourself in “Build your personal brand.”

A 13-year MDRT

member from Bandung, West Java, Indonesia, he was a member of the 2014 Advisor Branding and Marketing Committee. Contact him at dkaryanto@gmail.com.

34
34

Learning to drive and maintaining a compli- ant practice have a lot in common, according

to SCOTT S. PATER- ICK, CLU, CHFC. In

“The drive for compli- ance and success,” Paterick and the Bylaws and Ethics Committee outline the similarities. Paterick is a 23-year MDRT member from Wiscon- sin Rapids, Wisconsin. Contact him at investor@wctc.net.

43
43

In “Developing production require- ments,” author JUDY

XANTHOPOULOS,

PH.D., explains how MDRT determines production numbers. Xanthopoulos is an economist and a principal in Quantria Strategies LLC. She develops microsimu- lation models for tax, health and pension policy analysis. Contact her at jax@quantria.com.

55
55

SUSAN MEITY, CFP,

AEPP, tells the true story of her husband’s cousin, Nicky, who died in a car accident

at a young age. In

“Nicky’s love letter,”

Meity writes about

how life insurance helped Nicky’s wife and son. Meity is a seven-year MDRT member from Jakar-

ta Barat, Indonesia.

Contact her at susan.meity@ east-starcorporation.com.

ROUND TABLE

the
the

OFFICIAL PUBLICATION OF THE MILLION DOLLAR ROUND TABLE

EDITOR IN CHIEF: Kathryn Furtaw Keuneke, CAE

MANAGING EDITOR: Liz DeCarlo

CONTENT EDITOR: Michael DePilla

CONTENT SPECIALIST: Scott Rogers

ART DIRECTOR: Brandon Lane

CHIEF EXECUTIVE OFFICER : Stephen P. Stahr, CAE

STRATEGIC ENGAGEMENT DIRECTOR:

Pamela Brown, CMP, CAE

MEDIA RELATIONS COORDINATOR: Jennifer Schimka

MDRT Executive Committee

PRESIDENT: Caroline A. Banks, APFS IMMEDIATE PAST PRESIDENT: Michelle L. Hoesly, CLU, ChFC FIRST VICE PRESIDENT: Brian D. Heckert, CLU, ChFC SECOND VICE PRESIDENT: Mark J. Hanna, CLU, ChFC

SECRETARY: James Douglas Pittman, CLU, CFP

To contact editorial office:

MAIL: MDRT, 325 West Touhy Avenue, Park Ridge, Illinois 60068 USA

PHONE: +1 847.692.6378 Fax: +1 847.518.8921

EMAIL: editor@mdrt.org

WEBSITE: www.roundthetable.org

Round the Table (ISSN-0161-7125) is published bimonthly by the Million Dollar Round Table, 325 West Touhy Avenue, Park Ridge, Illinois 60068 USA. Subscription rate is included in MDRT mem- bership dues: $20 for nonmembers in the United States, $30 for nonmembers outside the United States. Periodicals postage paid at Park Ridge, Illinois, and additional mailing offices. POSTMASTER, send address corrections to Round the Table, 325 West Touhy Avenue, Park Ridge, Illinois 60068 USA.

© 2015 Million Dollar Round Table. Round the Table is published for the use of Million Dollar Round Table members. All rights reserved. Round the Table is not to be used or loaned for any commercial purposes or other causes, nor is any portion of it to be reproduced without the express, prior written permission of the Million Dollar Round Table.

Round the Table is provided as an educational and informational service by the Million Dollar Round Table. The Million Dollar Round Table does not guarantee the accuracy of tax and legal information and is not liable for errors or omissions. You are urged to check with tax and legal professionals in your state, province or country. MDRT also suggests you consult local insurance and security regulations and compliance departments,

pertaining to the use of any new sales material with clients.

MDRT®, Million Dollar Round Table®, Top of the Table®, Court of the Table®, MDRT Foundation®, The Premier Association of Financial Professionals®, ConneXion Zone® and Global Gift Fund® are all registered trademarks of the Million Dollar Round Table®.

Round the Table is printed in USA with soy-based inks on elemental chlorine-free paper.

the Million Dollar Round Table®. Round the Table is printed in USA with soy-based inks on

IN

the
the

NEWS

member news | awards | calendar | in memoriam

MDRT CALENDAR Mark your calendar to include these important dates: March 1 Completed MDRT membership
MDRT
CALENDAR
Mark your calendar
to include these
important dates:
March 1
Completed MDRT
membership application
must be submitted
online or mailed to
MDRT, postmarked on
or before this date,
to avoid $200
additional fee
April 18
MDRT Annual
Meeting early
registration deadline
June 14
MDRT Annual Meeting
begins in
New Orleans, Louisiana
Oct. 7
MDRT Top of the
Table Annual Meeting
begins in
Naples, Florida
Top of the Table Annual Meeting begins in Naples, Florida Specialty recognized Justin D. Nabity ,

Specialty

recognized

Justin D. Nabity, a two-

year MDRT member from Omaha, Nebraska, was listed as one of the Best Financial Advisors for Doctors by Medical Economics maga- zine, a business resource for physicians. The listing, published in the November 2014 edition, recognizes financial experts who cater to the specialized needs of physicians. Nabity is one of the founders of Physician Advisors LLC.

Nabity is one of the founders of Physician Advisors LLC. Lifetime achievement honored The Charleston Estate

Lifetime

achievement

honored

The Charleston Estate Planning Council awarded

Peter S. White, CLU, ChFC,

a 51-year MDRT member from Charleston, West Vir- ginia, its first-ever Lifetime Achievement Award. White was recognized for his more than 55 years of service to clients, the community and the estate planning pro- fession. He has served as a board member for civic and nonprofit organizations.

as a board member for civic and nonprofit organizations. Client excellence award Michael J. Fischer, ChFC,

Client excellence award

Michael J. Fischer, ChFC, CLU,

has qualified for the Signator Investors Inc. ACE Platinum Award. The award is one of the highest honors that Signator bestows on financial professionals within the na- tional network. ACE stands for Achieving Client Excel- lence. This marks the 16th time Fischer has qualified for the ACE award. He is a 16-year MDRT member from Fogelsville, Pennsylvania.

He is a 16-year MDRT member from Fogelsville, Pennsylvania. Cover story When Retirement Advisor put together

Cover story

When Retirement Advisor put together its annuities issue, it turned to an MDRT member for advice. Steven A. Plewes, CLU, ChFC, graced the magazine’s cover and was interviewed about marketing and selling annuities. In the article, Plewes stated that he is careful to use annuities that are tax efficient and low-cost when he can. He also explained that annuity products support his philosophy that a portfolio is only as good as the income it can consistently generate. Plewes is a 28-year MDRT member from Bethesda, Maryland. He also serves as Divisional Vice President of the Annual Meeting Program Development Committee.

IN THE NEWS

IN THE NEWS
Kopcinski Management appointed honors Raymond John Kopcinski Sr., David B. Schulman, CLU, CMP , was
Kopcinski Management appointed honors Raymond John Kopcinski Sr., David B. Schulman, CLU, CMP , was

Kopcinski

Management

appointed

honors

Raymond John Kopcinski Sr.,

David B. Schulman, CLU,

CMP, was appointed 2015 chair of the Professional Convention Management Association. Kopcinski is senior director of the Exec- utive Department at MDRT, where he assists in the de- velopment and implemen- tation of cultural, physical, strategic and structural changes. He has been with MDRT for 30 years.

ChFC, has been named the 2015 inductee into the GAMA International Man- agement Hall of Fame. This induction is given by the financial services industry to recognize a leader whose professional career has been building a field organization and serving the industry. Schulman is a 34-year MDRT member from Fort Lauderdale, Florida.

is a 34-year MDRT member from Fort Lauderdale, Florida. Alumnus donates to school David J. Downey,

Alumnus donates to school

David J. Downey, CLU, a 47-year MDRT member and former college basketball standout from Champaign, Illinois, has donated $2 million to the State Farm Center at his alma ma- ter, the University of Illinois. The donation will be used for a courtside club area that will be named Club 53, in recognition of Downey’s school-record 53 points scored against Indiana University in 1963. That record still stands 52 year later.

IN MEMORIAM

Arthur J. Andreoli, CLU Worcester, Massachusetts Age: 78, MDRT: 45 years

Ernest A. Chletcos Horsham, Pennsylvania Age: 97, MDRT: 32 years

Kirk Thomas Colford, CLU Fort Lauderdale, Florida Age: 65, MDRT: 5 years

Francis A. Derby, CFP, CLU San Diego, California Age: 84, MDRT: 38 years

Frank B. Faust Lilburn, Georgia Age: 79, MDRT: 48 years

Howard Ferguson Tracadie-Shela, New Bruns- wick, Canada Age: 64, MDRT: 1 year

Loren Grone Mesa, Arizona Age: 81, MDRT: 48 years

William L. Heinz Jr., CLU, ChFC Atlanta, Georgia Age: 89, MDRT: 47 years

Fred R. Kissling Jr., CLU, MSPA Lexington, Kentucky Age: 84, MDRT: 57 years

Frank M. Lorenzo Tampa, Florida Age: 89, MDRT: 49 years

Robert W. Meldrum, CLU, ChFC Ottawa, Ontario, Canada Age: 66, MDRT: 15 years

Warren James Whittaker, CLU, LUTCF Beech Grove, Indiana Age: 70, MDRT: 5 years

Jessica Harieke Woeibowo Jakarta, Selatan, Indonesia Age: 25, MDRT: 4 years

Tony Ziehler, CLU Tucson, Arizona Age: 79, MDRT: 43 years

REMINDER
REMINDER

I have a lead sheet posted on my wall. Whenever I hear some-

one talking about a person I feel may be an opportunity, I list

them on this sheet. Seeing it on my wall each day reminds me

to follow up on the opportunity to meet with the prospect.

— Susan Catherine Paterson, FChFP

Loganholme, Queensland, Australia, 11-year member

In a world of rapid change, we must know what we will not change. Spend
In a world of rapid change,
we must know what we will
not change. Spend time to
develop principles you will
not break.
— David M. Ethell, LUTCF
Camarillo, California, 13-year member
SLUMP BUSTER When you’re “in a slump” (psychologically or business-wise), set up a lunch or
SLUMP BUSTER
When you’re “in a slump” (psychologically or business-wise),
set up a lunch or breakfast meeting with your five favorite
clients. By “favorite” I don’t just mean the ones who make
the most money; I mean the ones who you enjoy being
with, as well. Be prepared to respond to any questions
they may have, but talk no business at the lunch. This is
not a “review meeting” in the formal sense but rather a
“relationship visit.”
It’s a great way to get out of a slump. At the minimum, you
will feel better with more confidence, and you may be surprised
at what develops during a lunch with no expectations!
— Randy L. Scritchfield, CFP, LUTCF
Damascus, Maryland, 30-year member
TIME IS PRICELESS
TIME IS PRICELESS

Between money and time, which is more important to

you? For me, time is more important than money. Why?

You can regain money by working hard, but you will

never regain wasted time. Therefore, I strive to manage

my time effectively by using a timetable, just like I had in

school. Here’s how:

n We all have 24 hours per day. I set aside seven hours

to sleep, three hours of family time and four hours to eat,

shower, read and relax. That leaves me with 10 hours. I

divide those 10 hours into three time slots: three hours

before lunch and four hours after lunch for sales activities

(plus one hour for lunch). Then, I have two hours in the

evening to review the day, write in my journal and plan

for the next day.

n Within that timetable, I manage my appointments

in Google Calendar for the week (two each morning and

three each afternoon). My goal is to fill all of these 25

slots with quality appointments.

n I have Saturday morning saved to review the past

week and plan for the next week and the future.

When you spend your time effectively, you maximize

your productivity. Having good behavior and repeating

an organized pattern will guarantee your success.

— Ken Ibuki

Nagoya, Japan, 21-year member

in

PRACTICE

in PRACTICE Tips & Technology 10 | Roadmap to success 12 | Social media tips 14

Tips & Technology 10 | Roadmap to success 12 | Social media tips 14 | Your personal brand 16 Going paperless 18 | Helping senior consumers 20

16 Going paperless 18 | Helping senior consumers 20 SENIORS ON FACEBOOK For the first time,

SENIORS ON FACEBOOK

For the first time, more than half of all online

adults 65 and older (56%) use Facebook.

— Pew Research center, 2014

CLUTTER OVERLOAD

54% of Americans are overwhelmed by clutter at home and at work.

— National Association for Professional Organizers and Decluttr, 2014

MORE LIFE INSURANCE

33% of Americans

say they don’t have enough life insurance, in- cluding one-fourth of those who already own a policy.

— Life Happens, 2013

WOMEN’S RETIREMENT PLANNING

More women than men (62% vs. 55%) say they need professional advice for their retirement planning.

— LIMRA, 2014

TIPS & TECHNOLOGY life hacks | apps | time-savers Swapping money Arriving in a foreign

TIPS & TECHNOLOGY

life hacks | apps | time-savers

TIPS & TECHNOLOGY life hacks | apps | time-savers Swapping money Arriving in a foreign country

Swapping money

Arriving in a foreign country after a long flight and realizing you need to exchange currency can be frustrating. If you arrive after business hours,

it can be almost impossible to find an open bank or money-changer, but

WeSwap is trying to make life easier for international travelers through its person-to-person currency exchange. WeSwap is a new company that lets you swap money online with other people who are converting currency. To use this technology, WeSwap sends you a prepaid MasterCard that makes

it easy to withdraw or spend your money wherever MasterCard is accept-

ed. Select the currency and amount you want, and WeSwap will find you

a match (charging 1 percent for every swap) or do the exchange itself (at a

rate of 1.5 percent) if a match isn’t readily available. Get more information at weswap.com.

Don’t lose luggage

Toss the Trackimo Universal ($100) in your luggage, and you won’t have to worry about losing your possessions anymore. The tracker lets you use a computer or smartphone app to locate your luggage in the event the airlines have no idea where it is. You can also get alerts via text and email, and app notifications, to let you know about location changes, so you can make sure your luggage is on the same connecting flight you are. Get more information at trackimo.com.

flight you are. Get more information at trackimo.com . Just Google it You probably already use

Just Google it

You probably already use Google to search the Internet. Now you can use some of Google’s other offerings to keep track of your business and goals. To get started, create a Google account and email. Then go to Google Drive, click “Create” and select “Form.” In simple steps, you will be able to design your form. First, write a question and select the question type. For instance, the question might be “Did I ask for referrals today?” and the question type would be multiple choice. Next, edit the list of options to answer this question. In this example, the answer is going to have two options: yes or no. The question types you can use are text, multiple choice, checkboxes, list, scale, grid and date. It is very flexible and easy to use. Keep in mind that to create a useful form, questions must be relevant to your goals. Figure out which of your daily sales and prospecting activities will get you to your goals and measure those activities with this application. Once you have your form ready, make it accessible. Just before finalizing your form, make sure to select the checkbox to show the link to submit another response. Then copy this link and paste it in a new event for your Google Calendar (or any calendar you use that is accessible from your smartphone) at the time you would like to fill in your form. Set the event to be repeated from Monday to Friday, or daily if you prefer. Whenever you want the results, go to Google Drive and click on “Responses.” You will get the responses in a Google spreadsheet that can be easily managed to get all the statistics you need about your daily activities.

Victor Vuilleumier Valdez Guadalajara, Mexico, 4-year member

activities. Victor Vuilleumier Valdez Guadalajara, Mexico, 4-year member 10 ROUND the TABLE.ORG | MARCH/APRIL 2015
Power at hand If you’re a frequent traveler, you probably need a battery charger to

Power at hand

If you’re a frequent traveler, you

probably need a battery charger to

recharge your devices on the go. The

new Mophie Powerstation Plus fea-

tures a compact design (4 by 0.49 by

2.3 inches) and universal compatibility,

along with integrated charge and sync

cables. When you aren’t charging your

smartphone or tablet, the built-in ca-

bles tuck in behind an aluminum cover.

The Mophie Powerstation Plus charges

your devices faster than the charger

that comes with your phone or tablet

and is good for 500 charging cycles

at full capacity. More powerful models

are also available. The backup battery

is $80 and is available at mophie.com.

Smart bulb

If you’d like to wake with the sun, or at least feel like you’re waking up when the sun is shining, you might want to try the Misfit Bolt wirelessly connected smart bulb. This light bulb lets you personalize

your home lighting to create beau- tiful lightscapes. With its sunrise simulation, Bolt also makes getting out of bed a brighter experience. And, if you need a little help falling asleep, try the soothing light and sound shows when you get into bed. You can also transform your environment with millions of colors and combinations available through the Misfit Home mobile app. The light bulb screws into a regular sock- et and works directly with your phone — no complicated hubs or setup needed. The light bulbs are $50 each and are available at misfit.com.

light bulbs are $50 each and are available at misfit.com . Finding connections Nimble is a

Finding

connections

Nimble is a cloud-based client relation- ship management program (CRM) that ingeniously combines all of your clients’ and prospects’ social media accounts and activities into a searchable data- base. Nimble helps you see connections between your best clients and prospects with whom you want to connect. It can offer your clients and centers of influ- ence a way to introduce you to those prospects online. Using LinkedIn, for example, your profile can be sent from one member to another with a message to connect you to a prospect. Nimble can also help with client and prospect research. By reading an online profile on LinkedIn or Facebook, you can learn information that can make your face-to-face interactions more produc- tive. Insights on a prospect’s or client’s opinions and feelings can also be gleaned from their social media posts. If the key to a successful financial services practice is going to be driven more and more by your personalized approach, tools like Nimble will be indispensable. At $15 per month, it is also very affordable. For more information visit nimble.com.

Thomas F. Levasseur, CLU, CLTC

Dover, New Hampshire

25-year member

PRACTICE

Anthony Engrassia meets with a client to explain his financial planning process. DAN CRAWFORD PHOTOGRAPHY
Anthony Engrassia meets with
a client to explain his financial
planning process.
DAN CRAWFORD PHOTOGRAPHY

Writing

it down

Putting the process on paper gives Engrassia a roadmap to success.

BY LIZ DECARLO

A nthony G. Engrassia, LUTCF, ChFC, believes in the power of the process. Engrassia, a 19-year MDRT member

with 10 Court of the Table and two Top of the Table qualifications from Battleboro, North Carolina, has not only mapped out his finan- cial advising process, but also trademarked it. His signature Strategic Freedom Process takes clients from initial meeting through regular reviews. “We all have processes. The problem is, no one takes the time to write it down and put it on paper,” Engrassia said. “Writing things down and having a process is a way to not lose things. And you can make things better. You can make changes, but then you know where to come back to.” Engrassia, who started out as an insurance agent with Mutual of Omaha in 1990, has seen

the industry change drastically throughout his career. His process takes these changes into account when planning an individual’s future financial plan. To help clients look at the larger picture when it comes to today’s landscape of retirement sav- ings and investments, Engrassia formalized his process about 10 years ago by taking the time to write down each step. The initial step in his Strategic Freedom Process is to have a starter session with the cli- ent. “This is a first-time meeting where they’re getting to know who I am and I’m getting to know who they are,” Engrassia said. “We don’t talk about money, but we do talk about what’s important about money to them. We talk about goals and objectives.” This initial meeting sets the tone for how Engrassia will work with the client. “I tell them, ‘You’re the CEO of your assets. You can continue to do it yourself, or you can hire me to act as your chief financial officer,’” he said. “When people talk to different advisors — CPAs, attorneys, insurance agents — everyone’s talking in isolation from each other. They need a coach who’s looking at the big picture, so they’re all on the same page. If we look at the whole picture, we can make recommendations based on what’s in place and what’s of most importance.” That’s exactly what Engrassia does as the second step of his process — he gathers infor- mation. By the end of the second meeting, the clients know how the process will help them and what fee will be charged.

“Then we analyze these facts. After that, it’s so easy to make recommendations,” he said. “They’re no-brainers because everything falls into place.” Engrassia has each step of client interaction mapped out, from meeting with a client to contacting a client for a review. “So even if you had to step in for someone else, you could get something done by following the bouncing ball.” Engrassia’s clients have been receptive to his process. “They really love it. They love the or- ganization. They love that there’s a process, and they can see the ultimate outcome,” he said. “It gives them excitement and creativity to see, ‘if I do this and that, I know what the outcome will be.’ Things can change, but we have a roadmap.” Without a plan, any changes often mean start- ing over, Engrassia said. But if it’s written down, people can still keep the end in sight. And when it comes to running his business, Engrassia uses the same process he uses with his clients. One day each quarter, he puts aside his workload and takes a look at the business. “I have to step back to work on my own goals and processes,” Engrassia said. “That’s the only time I can do that because I tend to let the busi- ness run me when I’m here.” For other advisors interested in creating their own plan, Engrassia said the first thing to do is just go through what you’re already doing. “Ev- erybody who’s successful in this business has a process,” he said. “It’s just going through what you’re doing and getting it written down. Then

it’s so much easier.”

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GET TO KNOW ANTHONY ENGRASSIA

it’s so much easier.” RT T GET TO KNOW ANTHONY ENGRASSIA n Engrassia started his career

n Engrassia started his career

in 1990 with a suit jacket from Goodwill. It now hangs on his conference room wall.

n Shortly after they mar-

ried, Engrassia and his wife packed up the car and took a roadtrip to find a place to live. When he was pumping gas in Rocky Mount, North Carolina,

someone said hello. Engrassia and his wife surmised this was a friendly town and decided to live there. They had $6,000 to

their name and no jobs. n In North Carolina, Engrassia realized he would have to learn to hunt to estab- lish relationships with clients. The first time he hunted and

killed a deer, he and his wife spent six months eating it. That was almost two decades ago. She has never eaten deer again.

CONTACT:

Anthony Engrassia

tony@wmsnc.com

PRACTICE

AGE FOTOSTOCK/JOHN LUND

Social media

at the next level

How you can stand out from the Internet crowd.

BY DAVID M. ETHELL, LUTCF, AND KEN IBUKI

the Internet crowd. BY DAVID M. ETHELL, LUTCF, AND KEN IBUKI W hen it comes to

W hen it comes to interacting with clients and prospects, it takes

more than just creating a Facebook or Twitter account to make

an impact. Today’s consumers are often social media savvy,

with multiple types of accounts and many people and businesses vying for their attention. So, how do you reach out in the midst of the social media frenzy without getting lost in the world of wireless? A few MDRT members have found some ideas that work for them, and they may work for your business, too. Consider trying a few of these tips.

Getting started

too. Consider trying a few of these tips. Getting started 1. Describe yourself on social media.

1. Describe yourself on social media. Take time to craft an informative, interesting bio. Don’t just list your qualifications or products sold; say who you are and what you like. “My

social media bios start with the fact that I am a father and husband, and enjoy playing squash,” said Ian J. Green, a 17-year MDRT member from London, England. “I end with my work creden- tials.”

2. Take time to post. Set time aside regularly

to post to social media. “For example, I update my company’s Facebook page when I have a new

edition of my client magazine,” Green said. Also, use a program such as Hootsuite that enables you to post comments to multiple sites (including Twitter, LinkedIn and Facebook) at the same time.

3. Avoid breaches of confidentiality. “Never

post anything that you don’t have permission to,” Green said. “Gen X’ers think nothing of posting anything anywhere when out socially, but we are professional at work. For example, don’t post a picture of a client’s office without their permis- sion.” Green recommends that you don’t “check in” to FourSquare, Swarm or Facebook stating

you are visiting John Doe at his office, as he may not want that to be public knowledge.

4. Avoid compliance headaches. “Never try to

sell or make a direct offer on social media,” Green said. “If you think compliance might question it, just don’t do it.”

Targeting your social media

Targeting your social media 1. Know your audience and how they use social media. In Japan,

1. Know your audience

and how they use social media. In Japan, Line, a social media app for exchanging text messag- es, graphics, video and audio, is now the No. 1 form of communication for teens, with people in their 20s and 30s also using the app. This age group also uses email, Instagram and Facebook; those in their 40s prefer email, phone and Facebook; people in their 50s prefer phone and email; and those in their 60s prefer phone. “Selecting the best method of commu-

nication is always important in marketing,” said Naoki Masuda, a five-year MDRT member from Tokyo, Japan.

2. Ask clients for a little nudge on Facebook.

“I request the client tag me on Facebook with a brief comment, but not directly suggesting the product or the fact that I have done business with him or her,” Masuda said. “I watch what

happens to it. If anybody ‘liked’ it and seems to have an interest in what I do, I may ask the client to refer him or her to me.”

3. Ask clients for a boost using Twitter.

“I might ask a Twitter user to post ‘Just met a guy in Shinagawa. He gave me valuable advice on my insurance plan. I’d be happy to refer him to you if you are interested,’” Masuda said.

Using Instagram to gain exposure

Masuda said. Using Instagram to gain exposure 1. Getting started. Down- load the free Instagram

1. Getting started. Down-

load the free Instagram application to your smart- phone. Take five minutes to do the tutorial. Connect with your contacts who are already on Instagram, and

invite all others to join.

2. Browse the day’s posts. “Like” some photos

and comment where you want to. Younger clients are steering away from email and often reaching to social media to save time while maintaining their connection to their circle. It’s a

great tool to use to find commonalities and con-

tent that can inform you of a client’s life events,

travels, etc.

3. Take a minute. Murphy’s average time con-

necting and keeping track on Instagram is one minute per day. “For me, Instagram is a great way to maintain a presence and a connection with clients, contacts and people in my circles with a limited time commitment,” Murphy said.

“You will be amazed at how quickly you will be posting, connecting and creating a social media presence that will keep you at the forefront of your clients’ minds.”

Matt Joseph Murphy, EPC

Calgary, Canada, 3-year member

“Never try to sell or make a direct offer on social media. If you think compliance might question it, just don’t do it.”

— Ian Green

Using social networking sites to build relationships

1. Stay relevant regionally. If you’re in Asia or communicating with Asian clients, consider us-

ing KakaoTalk, which is available in 15 languages and used in more than 230 countries. KakoaTalk has targeted countries in Southeast Asia and is a handy tool for global communication.

2. Focus on your message. Try to narrow your

focus on potential clients to build an emotional relationship.

3. Share your media. When you are posting

to a social networking site, incorporate software such as iMovie to share photos and videos that can give clients a heartwarming feeling.

4. Act fast. When clients post a story or photo

on their social networking site — whether it is KakaoTalk or Facebook — instant reaction is needed. It can be a chance to enhance a rela-

tionship and build a friendship.

Oh Ji-Hong

Gwangiu, South Korea, 13-year member

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PRACTICE

CORBIS

Build your personal brand

How to create the image you portray to clients and prospects.

BY DEDDY KARYANTO, CFP, QWP

to clients and prospects. BY DEDDY KARYANTO, CFP, QWP S uccessful insurance agents are not naturally

S uccessful insurance agents are

not naturally well-known; they

consciously make themselves

well-known, both inside and outside of their profession. They know it is their reputation that really determines success in the insurance business. And a great reputation is earned by the pro- fessional insurance agent who knows the products well, serves with heart and really gives the best to their clients. This is the kind of reputation they strategically build through personal branding. To envision the concept of personal branding, imagine yourself in a crowd of strangers. What should you do to make them pay attention to you? Your best choice, if you want strong person- al branding, is to consistently make yourself stand out in a positive manner. Consistent positive behavior delivers a vitalizing message to the people around you. Based on their good experience and positive recollection, they become eager to get in touch with you. To achieve sustainable success and stand out in the insurance business, your only choice is to focus on doing your job professionally and building strong, positive personal branding. It is important to keep in mind that this brand is not a coincidence. You must intentionally nurture it. The key is to be consistent throughout your work. Every time you meet or con- nect with prospects and clients, your personal branding is formed. Whether you realize it or not, prospects and

clients judge you, and their assessment is highly dependent on your actions, your message and your reputation. What they say about you in the future, whether negative or positive, has a great influence because they may be talking to people who also exist in your name bank. Positive as- sessment will certainly benefit you. Personal branding is not only a matter for senior insurance agents, it is a matter for the be- ginner as well. Even if you are a student who has just graduated from college, you can still build a reputation through positive personal branding. Your newcomer status could actually become a strength if you are a quick learner and perform thorough preparation. As long as you always have a positive attitude and demonstrate your professional skills, prospects and clients will re- spect you, regardless of your age. Moreover, they may praise your entrepreneurial spirit. This is definitely a strong, positive personal brand.

The most effective ways to build a personal brand are:

1. Be a professional consultant, and always give the best to your clients.

Your personal brand is formed every time you meet or connect with prospects and clients. They will judge you based on their perceptions of your behavior and actions. If your clients are satisfied with your services, they will be happy to share their good experiences with friends and relatives and give you more referrals.

2. Be focused on being the best in this profession.

First of all, qualify and register as an MDRT member — not just once or twice, but continu- ously every year. These achievements show cli- ents and prospects that you are part of the elite organization of the best financial services pro- fessionals in the world. You may use the MDRT member logo on your business card, which will give a lasting impression to prospects. If you qualify as an MDRT member, you will often get some other award as acknowledge- ment within your insurance company that you can publish in mass media. That will help in- crease your profile in your community, and that

really affects your prospects and your clients, all of whom want to do business with a profession- al. It will reinforce your positive personal brand.

3. Reach every kind of qualification as soon as possible — and get the word out.

Higher qualifications lead to different impres- sions. This is not because the terminology is more sophisticated, but because people can predict an agent with a higher qualification level had more flight hours, worked with more clients and can handle larger businesses. This is an important step to building your per- sonal brand — almost all life insurance compa- nies routinely feature pictures in national media of agents who excel. This certainly will boost your reputation and the level of trustworthiness from your prospects. You could also put a plaque or trophy you have received in a place easily visible to your clients or prospects. Through presentations like this, your posture and positive personal brand become more powerful. You need to career plan, set target achieve- ments and take advantage of any challenges given by your company — your positive personal brand gets stronger and your business gets big- ger every time you complete one. Aside from accomplishments, you can use the media to broadcast your thoughts and practi- cal tips. You can write an article in a magazine, book, blog or personal website. You can use a chance to speak on radio or television to share insurance insights or useful information. All this is certainly not a matter of being narcissistic. You really do have to meet specific qualifications and aim to share information or to educate.

It is now clear that building a strong, positive personal brand is a smart move to boost your business. Fortunately, you do not need to spend heavily like a business corporation to build your brand. In fact, you almost do not need to spend money at all to do this. You just need to realize the importance of building a personal brand and doing it early. The goal of the process is to be- come a professional consultant and always give

the best to the clients.

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Consistent

positive

behavior

delivers a

vitalizing

message to

the people

around you.

PRACTICE

Paperless

pointers

Two members empty out their file cabinets.

BY LIZ DECARLO

Two members empty out their file cabinets. BY LIZ DECARLO “With real estate at $40 a

“With real estate at $40 a square foot, it’s a no-brainer from that standpoint.”

— Minh Vo

M inh Duc Vo, a three-year MDRT

member from Houston, Texas, went

paperless after realizing how much

each file cabinet cost in real estate prices. “With

real estate at $40 a square foot, it’s a no-brain- er from that standpoint,” Vo said. “Each filing cabinet takes up about 4 feet of space, so there goes $160 a year. Take that number and multiply

it times a five-year lease commitment, and it’s a

dramatic cost savings.”

Vo decided to go paperless a year ago, after seven years in the industry. It wasn’t a quick or easy process. “We scanned and uploaded every single piece

of paper,” Vo said. It took a part-time employee

about six months. Thomas F. Levasseur, CLU, CLTC, a 25-year MDRT member from Dover, New Hampshire, also went paperless out of a desire to save space. In 2007, he moved his office into his home. Levasseur used the transition process as an op-

portunity to clean up and organize files. “The first thing my assistant did was systematically scan all

of my files. We have a high-quality, high-speed

Xerox scanner,” he explained. “For our A, B and

C clients, we scanned each individual document

while at the same time weeding out things we

didn’t need.” Levasseur also created individu-

al files in the client relationship management

software. Deciding which software to use can be a com- bination of trial-and-error and using the system

that’s compatible with the broker-dealer you use. Levasseur started with a client management system that he eventually decided wasn’t the best for his workflow. “We’ve transitioned to Redtail because it’s more suitable for our securities busi- ness,” he said. Vo has found the software he uses to be cumbersome, but it’s what works with his broker- dealer’s system, so he doesn’t have the option of changing. “Because it’s a cataloged file, I have to sift through and sort it. It’s not built the way you want it to be — it’s basically like a spreadsheet program where you can sort one column. There aren’t multiple levels of sort,” he said. “But I’ll stay with this because I’m tied to my carrier.” The other glitch in going paperless is the fact that the industry itself requires hard copies of many documents. “Many insurance and securities companies still require paper. The industry isn’t up to speed with that,” Levasseur said. Because of this, both Vo and Levasseur start

with that,” Levasseur said. Because of this, both Vo and Levasseur start 18 ROUND the TABLE.ORG

with signed, hard-copy documents. “On new business files, we have to take a paper applica- tion. We scan the application onto the server, and then we can submit it to the broker-dealer for review,” Levasseur said. “We do the same thing on any client service document, for instance, the change of beneficiaries forms or benefit distribu- tion forms. All of these transactional-type doc- uments get scanned on the computer and then put in the client’s file.” Once the documents have been approved, anything that hasn’t been sent out is shredded. Computerizing client files requires careful planning to maintain compliance, especially in the securities industry. Levasseur uploads all documents to a secure cloud, where they are time and date stamped and put into an unchangeable format for the regulators. Vo works with his compliance team to make sure his clients’ paperless records are impeccable. “Your compliance team is your friend. I know it seems like they’re being hard about everything,

I know it seems like they’re being hard about everything, but at the end of the

but at the end of the day, they’re trying to follow their compliance manual — which is your com- pliance manual — so you don’t get sued,” Vo said. “It’s protecting the company, so that’s protecting you.” Levasseur also keeps compliance in mind when he’s interacting with clients. In addition to keeping documents on his CRM, he writes notes from any phone calls or meetings. “Before I can close out an appointment, I have to add notes about what was said and what’s agreed,” he said. “Having the client file in front of me when speak- ing with a client or prospect gives me important names and dates. The access to other documents is very helpful and makes me look smarter than

I am. In addition, it’s saving me time and it’s

making me much more compliant. My files are in pristine order.” Now that they have transitioned to paperless, Levasseur and Vo have found ways to use the sys- tem for other paperwork, including fact-finding, populating forms and review planning. “All of our fact finding is done on a tablet and automatically emailed to my assistant, who uploads it to the se- cure system,” Vo said. “We also have a paperless application for insurance contracts.” Levasseur merges his Redtail software with his financial analysis software. “We don’t have to put all of the client’s assets into the analysis to do an annual review — it’s already there,” he said. “It’s helpful with prospects, too, because once a prospect comes in, we put that information into Redtail and it’s there forever. The software feeds from Redtail. It’s very intuitive. Our strategies, our proposals and so forth, come out of the same database. That saves us a lot of time.” And, if Levasseur and Vo need to work while away from the office, having a paperless system means everything is at their fingertips. “It’s a Web-based system that you can look at anywhere — on your phone or your tablet, if you’re in Mexico, wherever you are,” Vo said. Levasseur also likes having all of his files avail- able anywhere in the world. “It’s nice to know that, in a pinch, if I’m on vacation somewhere and I get a call from a client, I simply have to log onto the server, open up my CRM, and everything

I need to discuss that situation is right there.”

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I need to discuss that situation is right there.” RT T “It’s saving me time and

“It’s saving me time and it’s making me much more compliant. My files are in pristine order.”

—Thomas Levasseur

CONTACT:

Minh Vo

minhvo@

financialguide.com

Thomas Levasseur tom@thebeaconfg.com

PRACTICE

AGE FOTOSTOCK/HERO IMAGES

6 ways to make clients comfortable

Varas focuses on adapting to the needs of senior consumers.

BY LIZ DECARLO

M icheline Varas, RHU, has heard the

saying that clients don’t leave advi-

sors because they don’t like them —

they leave because they don’t like them enough. “I want to ensure I capture ‘enough,’” said Varas, a 13-year MDRT member with nine Top of the Table qualifications from Vancouver, British Columbia, Canada. To do this, Varas focuses on making clients comfortable from the moment they make an appointment with her. She pays attention to every last detail, from reserving parking spots to providing printed materials in a larger font for easier reading. “Our industry is one of service, and our focus is our client’s needs — it’s what we do.” Varas said. “The way my practice has dovetailed, those with whom I’m dealing are no longer in their 20s. Understanding only too well the effects of aging, I think we have to be cognizant of what puts people at ease.” Varas recommends looking at those things that affect you personally and adapting them to whom you’re dealing with. “Getting old isn’t always fun, but it allows you to see life with a different set of eyes. Taking my glasses out to order at a restaurant has become an unfortunate necessity,” Varas said. “If I’m having to do this, others within the same age bracket or older will have the same issues. It wouldn’t make

or older will have the same issues. It wouldn’t make much sense for me to provide

much sense for me to provide documents which would cause someone to struggle in reading,

whether they are in my office or in theirs.” Varas, whose specialty is living benefits, focus- es primarily on joint work with other advisors. She has more than two decades of experience in the industry and many tips for working with senior clients.

1. Know your audience. “Marketing to 50-plus is more than offering products. It’s also

adapting your style, communication, market- ing strategies and office environment. Change printed materials to a larger font. Consider the adequacy of parking, ramp/wheelchair accessi- bility and lighting.”

2. Don’t stereotype these individuals as “old,” and don’t assume “advanced age” is an ob-

stacle to computer or Internet use — 60-plus is the fastest growing segment of computer users.

3. This age group generally prefers to learn through communication that is both oral

and visual, so provide documentation for them

PRACTICE

Members, speakers and guests at the 1939 Annual Meeting.

1939 1939

Buying lasting happiness

Annual Meeting speaker reinvigorated Round Table members’ passion for life insurance.

BY KATHRYN FURTAW KEUNEKE, CAE

The 1939 Annual Meeting in St. Louis, Missouri, included a speaker who had never sold a single insurance policy but had an undeniable passion for the prod- uct. Charles T. Davies, a retired business owner from Wyomissing, Pennsylvania, owned more than $1 million of paid-up policies. His philosophy was to purchase only single-premium policies, then use the dividends to finance purchases for his family and enjoy his retirement. During his lifetime, he became very knowledgeable about the technical side of life insurance and gained the admiration and trust of many agents, who sought his advice. At the time of this presentation, he could directly trace his influence in the sale of more than $1 million in face value in four years’ time. Addressing the attendees before Davies’ presentation, “Why I bought life insurance,” MDRT President Paul C. Sanborn of Boston, Massachusetts, said, “If we only had a few more people in this world to motivate ourselves, as well as the buying public, of the type of Mr. Davies, we would have fewer headaches in pleading with people to do the things that they should do.”

I would like to tell you that I am not an

insurance man, although I am not bragging

about that. I buy life insurance — you sell it.

Life insurance is the best builder of self-respect there is in the world. I believe that life insurance brings more happiness, more lasting happiness, at the right time than anything else. I am not unmindful of what religion does, but I think life insurance works a little faster. During the last nine years, all of us have read about the Depression; all of us know about the Depression. We have heard about it over the

radios. If we missed that and couldn’t read, our friends told us about it. I imagine some of you know something about it, too, and so do I. But not much because I sold practically everything I had, or everything I didn’t want, in 1928 and bought life insurance.

The buying of that life insurance is, I think, what is going to interest you. The first policy I ever bought was when I be- came engaged to be married. It was for $2,000 and, believe me, that was some policy. It cost more to keep up in those days than you have any idea of, but it brought me more pleasure than any policy I ever bought because it taught me two things: First, it was a good thing to do; second, I had something that I could not earn myself. I was not earning enough money, so I thought, to ever save $2,000. Then, about a year after that, my wife bought her wedding dress. When a girl buys a nice bathing suit, she won’t go near the water. She will buy a riding habit and never expect to get on a horse. But, believe me, when she buys a wedding dress, she means business. So I took out $3,000 more worth of life insurance. But the agent never solicited me afterward for more life insurance. He either thought $5,000 was my limit, both of earning and brain capacity, or he had less brains than his compa- ny thought he had. It is always easier to sell a satisfied customer than to dig up a new one. Nobody ever sold me life insurance. I buy life insurance just the same as I buy cigars. Anoth- er week among a gang like this, and I think I would buy some more.

My life insurance does not insure my life — it only insures the things I want to do if I am not here. Mrs. Davies conceived the idea of buying a house. We decided that if it were necessary to

take out a fire insurance policy against some- thing that might happen and, if it did, could be replaced, then it must be much more important to take out a life insurance policy on something that, if it did happen, could never be replaced. Therefore, from that time on, our life’s ambi- tion for life insurance started. In 1920, I adopted a fine boy. I made up my mind that he would go to college, so we started our life insurance to provide for him going to college. I have just come back from setting him up in business in Montana. He is in business and happy, thanks to my insurance.

I never know when I may want to take some

more life insurance, so I keep well. Believe me,

my life insurance has kept me straighter than my religion because religion is too cheap, and I have to pay for life insurance.

I decided four years ago to take out a

$500,000 life insurance policy, single premium. When I buy a policy, I go to New York, Balti- more or Philadelphia to get the best financial advice I can about stocks. In this particular case, I wanted to spend $305,000, and a fi- nancial advisor gave me a list of investments I should buy with that total. I didn’t do what he said, but I kept the notes for future reference. Four years passed, and 1932 came along. I decided to see how much of a mistake I had made. At that time, my single-premium policy was worth $311,000, and the stocks and bonds had a value of $53,310. If I had bought the stocks that I paid a man to recommend, I would have been broke. You must have been believers in life insur- ance to sell $1 million worth, and if you have your share of life insurance, then selling it is easy because you have lived with it and know

what it does.

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Life insurance is the best builder of self-respect there is in the world.

TRUST ME
TRUST ME

Sometimes a prospect’s lack of trust can delay the implemen- tation or even identification of a plan. Often, the prospect broadcasts that lack of trust by acting as if they need to know and understand every little moving piece of every product, concept or design before moving forward on any of it. To help people understand that they don’t need to know and understand everything, I ask them, “Do you handle all the oil changes and repairs on your car yourself?”

When they reply no, I tell them the following:

“I don’t either. We both still drive the cars we own, but we don’t always know everything about how each part works. The main reason we own the car is to get us from point A to point B. We want to put the key in, turn it on and drive. We don’t have the time, the tools or the expertise to review every part of that en- gine or to understand how each part relates to every other part. My mechanic knows enough about those things to keep my car running for me so I have a safe, dependable vehicle. “The insurance plan we are putting together is like that car. I am the person who knows every part of the plan, but it would be impossible for me to explain every part of it to you. You need to trust that the plan is reliable and will get you from point A to point B. Along the way, we will work together, and you will become very familiar with key parts of the plan, just like you are very familiar with the features of the car you use regularly — like the steering wheel, gas pedal, radio, GPS, etc. But we will not re- quire you to have a complete understanding of every component of the plan before we get started. If we did that, you would still be sitting in the dealer show room going over every part of your car before you allowed yourself a chance to even test drive it. “You understand the need for a safe, reliable, capable vehicle to power your financial plan, and I understand every internal component of the plan. Ultimately, you will be familiar with the most important parts to make sure you have what you need and are in the driver’s seat.”

— Theodore S. Rusinoff, CFP Hudson, Ohio, 7-year member

F-E-A-R

F-E-A-R: has two meanings: 1. Forget Everything And Run 2. Face Everything And Rise —
F-E-A-R: has two meanings:
1. Forget Everything
And Run
2. Face Everything And Rise
— Nilesh N. Shah
Coimbatore, India,
14-year member
WHAT NOW?
WHAT NOW?

Advise clients to sort their bills into two piles: their own personal bills and their family’s bills. Then ask them, “Who will pay the ones in the family pile if you’re not there?”

— Victoria Acebedo Marcaida Makati, Philippines, 9-year member

TRACK YOUR PROGRESS

 
TRACK YOUR PROGRESS   Every week at our Mon- day morning meeting, we get a copy

Every week at our Mon-

Every week at our Mon-

day morning meeting,

we get a copy of our

“standings” — a chart

showing how we are

doing on a percentage

and numbers basis for

MDRT qualification

you can use these

(with actual business

charts to see where you

closed and pending

regularly have slumps

business). Keeping

and upticks through the

track of your progress

course of a year. This

over the year helps to

can be used to create a

keep you focused on

strategy to boost your

the task at hand. Don’t

production in down

get depressed if the

times (e.g., have a sem-

numbers are down; use

inar for clients, etc.).

it as an opportunity to

— Travis D. Manning, CFP,

fix the problem.

CLU, Caledonia, Ontario,

After a few years,

Canada, 5-year member

our
our

PEOPLE

our PEOPLE Time for a change 26 | More about Mexico 30 | Inspiring others 32

Time for a change 26 | More about Mexico 30 | Inspiring others 32 What drives ethics? 34 | Succession plans 36

others 32 What drives ethics? 34 | Succession plans 36 “We’ve had to expand our thinking

“We’ve had to expand our thinking and look for additional ways to distribute our products to more people using different strategies than we have used historically. We began to evaluate how to make this business work for the next 20 or 30 years.”

— Christi Daughenbaugh, CLTC (Page 28)

C hristi Daughenbaugh, CLTC, realized change was necessary when

she saw a declining revenue stream as a wholesaler. She decided to target consumers directly through a call center and a retail referral program. For Steven P. Arengo, CFP, AIF, change meant leaving the agency where he was unhap- py to start his own business. Arengo has focused on using technology to communicate and streamline practices, while also creating a diverse geographical clientele through a virtual office. For Bill Zimmerman, change meant literally “flip- ping” his marketing to educate consumers first before engag- ing, rather than the typical model of engaging and then educating. And, for Susan Catherine Paterson, FChFP, change came as a way to meet new compliance legislation in Aus- tralia. It has meant re-educat- ing staff and trying to stay one

step ahead as change steam- rolls through the industry and the country. Adapting to an evolving industry and consumers means learning new skills and, often, redefining your whole business itself. But for those MDRT members who under- take this challenge, the payoffs can be great.

Flipping the sales process

“I’ve been in the business since 1967. I saw other peo- ple early in my career who were pitchmen. They had sales techniques that almost strong-armed their client into buying,” said Zimmerman, a three-year MDRT member from San Diego, California. “I was never good at that, and I didn’t want to do that. Today, we are way more of an advisor, educating and helping clients by asking them questions about their situation that help us understand and work with them on a solution.”

Zimmerman’s marketing style emphasizes educating first and then engaging. He knew this was a different ap- proach to selling, but he didn’t know how to define it until he talked to a colleague whose wife was experimenting with a new teaching approach at her school. In that new model of education, students watched online videos of the teacher’s lecture at home and then came to school to do the homework and work with the teacher. “They called it the ‘flip model’ of education. I thought, well, that’s exactly what we’re doing with the client: flip marketing,” Zimmerman said. “You’re flipping it over — edu- cating the client first and then coming up with solutions.” Zimmerman describes this sales process as similar to a funnel. “At the top of the funnel, you have education, and you drive people to learn more about whatever it is, Social Security, retirement planning, tax-free retirement,”

Security, retirement planning, tax-free retirement,” time to make a Chang g e Sometimes the only way

time to make a

Changge

Sometimes the only way forward is starting over again.

BY LIZ DECARLO

2626 ROUNDROUND thetheTABLE.ORGTABLE.ORG || MARCH/APRILMARCH/APRIL20152015

CORBIS

he said. “Then there’s training and seminars, all on video. We educate them so they under- stand more about the concepts and why they need them. You put people in the top of the funnel, and they get smaller and smaller, and the prospects become clients coming out the bottom of the funnel.” Clients have been very receptive to the new approach. “They understand the con- cepts and why the solutions we present work for them,” Zimmerman said. “With this new system, they learn the fundamentals before being in- troduced to product solutions.”

Leaving negativity behind

Four years ago, Arengo was part of a successful financial plan- ning group. But something just didn’t feel right. “I realized I was building a book of business, not a practice,” said Arengo, a two-year MDRT member from Mason, Ohio. He wanted the flexibility to work more on his own, from a virtual office, and to incorporate his own process into the selling routine. Arengo knew something needed to change, but wasn’t sure how to go about it. Then two important pieces fell into place that pointed him in the right direction. “I read Dr. Henry Cloud’s ‘Necessary Endings,’ which has helped me release from various habits, strategies and clients that bogged me down,” Arengo said. “Dr. Cloud also helped me realize that it was time to transition from one broker-dealer to another.” At the same time, he estab- lished relationships with other advisors. “Four or five were

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MARCH/APRIL

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2015 | ROUND theTABLE.ORG

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27

Round Table members, and it occurred to me to look into the MDRT piece of the puzzle,” he said. Through network- ing with this group of advi- sors-turned-friends, Arengo realized it was time to make a very painful move. “My biggest piece was leaving that practice,” he said. “The silver lining is, through the whole process you really start to figure out where your priorities lie.” Arengo started his own practice almost three years ago. His priority was to create a virtual office with a diverse customer base. “Everything was paper, so I had to make everything electronic,” said Arengo, who hired a college student to input all the paperwork into software programs. Because he wanted to move into a more tech-savvy model, Arengo also created a marketing strategy that started with a quality website, e-marketing and increased exposure through social media. Arengo also developed a broad customer base. “From day one, I made the commit- ment to have a diversified client base from both a geographic perspective — 65 percent of my practice must be accessed virtu-

“The silver lining is, through the whole process you really start to figure out where your priorities lie.”

— Steve Arengo

ally or via plane — and industry

perspective,” he said. “I want to avoid having situations where one segment of the economy or client base diminished for whatever reason and potentially reduces the revenue of my prac- tice disproportionately.” He is working with a business coach to create an identity for his business and to develop a system for working with clients. “I have more process ideas in how I’m going about meeting with my clients and, depending on how my first meeting goes, what I need to get ready for the second. I never had a process before,” he said. And, while Arengo admits it has been a challenge to create

a new business based on a new

business model, he still be- lieves he made the right move. “It’s absolutely worth it.”

Moving into new markets

When Daughenbaugh and her brother bought their father’s business two years ago, she knew big changes were needed to keep the agency moving

forward. The agency had oper- ated primarily as a wholesaler, focusing on life insurance, annuities and long-term care. But Daughenbaugh realized that purely focusing on whole- saling these products through traditional insurance agents was unsustainable long term. “The reality is, the old model was really focused on wholesaling to people who were primarily selling life in- surance,” said Daughenbaugh,

a one-year MDRT member

from Dallas, Texas. “But those people are getting older and not being repopulated. We’ve

had to expand our thinking and look for additional ways to distribute our products to more people using different strategies than we have used historically. We began to eval- uate how to make this business work for the next 20 or 30 years.” Daughenbaugh determined there weren’t enough people asking the general public any- thing about their life insur- ance. Many of the individuals who have an insurance license now are doing other things in addition to selling life insur- ance. Daughenbaugh realized their agency had to expand the amount of sales they wrote di- rectly with the public, as well

as develop more marketing and sales support for agents who want to sell life insurance, long-term care insurance or annuities as ancillary products in their practice. “More and more, indepen- dent agents who don’t focus on insurance don’t want to sell the products we offer to their clients. But they are very inter- ested in us doing it for them,” Daughenbaugh said. They developed a retail referral program for these individuals last year. They use licensed agents internally to work with these referred clients, and they pass part of the commission earned to the referring agent as a referral fee. With an increased demand from the public to purchase insurance over the phone or through the Internet, Daugh- enbaugh has also worked with

a business partner to create a call center and become more Internet-based. The changes have made an

“There are so many opportunities to do so many different things, we’ve had to push

“There are so many opportunities to do so many different things, we’ve had to push ourselves to come back and refocus on what we committed to do.”

— Christi Daughenbaugh

impact on revenue. “The call center did probably 50 percent more business in 2014 than 2013, so I think we’re heading in the right direction,” Daugh- enbaugh said. “And we’ve identified other cross-selling opportunities for the call center.” As her agency interacts more directly with consum- ers, Daughenbaugh said the biggest challenge has been keeping up technologically. “Technology is a huge driver, and we have to continue to push ourselves to evolve and grow and not get stagnant,” she said. Daughenbaugh has also realized that, while the agency needed to change, too much change all at once made the process more challenging. “We almost bit off too much a few years ago,” she said. “There are so many opportunities to do so many different things, we’ve had to push ourselves to come back and refocus on what we committed to do.”

Staying ahead of industry changes

Paterson, an 11-year MDRT member from Loganholme, Queensland, Australia has seen

major legislative changes in the financial services indus- try since she started in the business 12 years ago. These changes mean increased com-

pliance and a trend to direct the industry to a more “profes- sional” model, she said. “Over the years, I have seen an increasing need to be able to not only adapt to change, but to position yourself in front of it,” she said. The increased compli- ance has meant additional time spent on files and client conversation. “This has been

a solid outcome for both the

advisor and the client, ensur-

ing meaningful discussion is held. It does, however, put

a focus on time spent for

money earned, encouraging me to be more commercial in client selection,” Paterson said. “The positive outcome is that we generally earn more from the type of business we prefer writing. By scrutinizing client selection more, we have ended up with a working book

that holds more passion for advisors.” With increased educational requirements for advisors and fee-for-service now playing a major part in ongoing rev-

enues, Paterson believes it will become more difficult to sustain the same levels of profitability without reassess- ing costs and revenue streams.

For the past few years, she has relied on EBITA (earnings be- fore interest, taxes and amorti- zation) to determine the value of the business. “By using EBITA as a valua- tion tool, I am ensuring we are as profitable in the market- place as other businesses that use a fee-for-service model,” she said. Paterson has also created

a workplace environment amenable to her employees. “I have developed a model that works well for mums returning to the workforce.

I have encouraged an intern

program and developed my staff from within the prac- tice,” she explained. “This has worked well, ensuring the culture of the business is built into the mindset of the team.” It’s vital to re-educate staff and advisors to accept change

rather than battle against it, Paterson said. “For some staff and advisors, the increased educational requirements are

daunting,” she said. “How- ever, by embracing these as a team, with many studying at the same time, it has been far more motivational.” Paterson doesn’t see the pace of change slowing down anytime soon. “I think change is a necessity to allow continued improvement and to keep up with technol- ogy and consumer appetite,”

she said.

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“By scrutinizing client selection more, we have ended up with a working book that holds more passion for advisors.”

— Susan Paterson

PEOPLE

PEOPLE Mexico Past and future Members in Mexico rely on the ability to adapt to changing
PEOPLE Mexico Past and future Members in Mexico rely on the ability to adapt to changing

Mexico

PEOPLE Mexico Past and future Members in Mexico rely on the ability to adapt to changing

Past and future

Members in Mexico rely on the ability to adapt to changing markets.

BY SCOTT ROGERS

I n 1954, Russel Edwin Kennedy became an MDRT member. This was only the start of what would become 57 years of member-

ship, including 30 Top of the Table qualifications.

What makes Kennedy’s accomplishments all the more impressive, though, is that he was also the first member to qualify from Mexico. In 2014, Mexico was home to 462 MDRT mem- bers. If the members we talked to have anything to say about it, that number will only continue to grow.

Guadalupe Elvira Ayala Arredondo, an 11-year MDRT member from Mexico City, Mexico, and Hermán Colín, an eight-year MDRT member from Estado de Mexico, Mexico, had always been interested in the profession. “The career chose me,” Colín said. “My father was an insurance agent from when he married until he died in 2004. He aptly suggested I first work in an insurance company to see if I was in- terested in that profession, and definitely, it was a very good hunch.” Colín takes pride in providing his clients with the protection they deserve. “We protect what’s valuable for each person:

their health, their welfare and the future of their loved ones,” he said. Over the years, his process has changed greatly. “In my first appointments with clients, we used books and actuarial tables to determine the premium and based it on the sum assured, age and so on,” he said. “Nowadays, all the quotes use technology. In a few minutes, we can make a presentation with prices, benefits and the advan- tages of each product.” For Ayala, the issues she faces sound very similar

For Ayala, the issues she faces sound very similar “We must look for a way to

“We must look for a way to provide our products to all sectors.”

— Guadalupe Ayala

Mexico City
Mexico City
Teotihuacan, a Mesoamerican pyramid outside of Mexico City.
Teotihuacan, a Mesoamerican
pyramid outside of Mexico City.

to ones advisors across the world also encounter. “Currently, one of my most important chal- lenges is to transcend to the next generation of my current clients: their children,” she said. “I will continue training to stay up-to-date with the market’s needs. In terms of my company, I will continue working to have a consolidated staff and develop them at the same time. All of this is a challenge, but also a great opportunity.” According to Colín, there is still a great need among the Mexican public to own life insurance. “Our job is to open the eyes of the people to the benefits that life insurance provides them and their loved ones. This is a big challenge, but I think firm steps have been taken to make people realize it is indispensable, which gives us more penetration in the market,” he said. “As an emerg- ing country, we must realize that a common issue in those economically important countries and those that are growing is that their insured levels are higher.” Even with this continued growth of life insur- ance, Ayala still sees issues in the profession. “Insurance culture has permeated more easily among the population; however, financial prod- ucts in Mexico remain for the middle and upper class,” she said. “There is a big challenge in this

country. We must look for a way to provide our products to all sectors.” These issues, combined with the possibility of Mexico switching to a commission disclosure system in the near future, make the country a unique study in adjusting to trends. Changes in the profession have never been an issue for MDRT-level producers in the country, however, as Kennedy shows. At the 1982 Annual Meeting in Atlanta, Geor- gia, Kennedy was a part of a panel discussion on international trends in the business. During his portion of the presentation, he touched on the issues advisors in Mexico were facing at the time, including inflation and the government repealing an inheritance tax. Kennedy noted that these issues forced other advisors back to the drawing board. Rather than go out of business, he said, they innovated. His message, three decades later, remains just as relevant today. “Perhaps we had something even more im- portant going for us: a readiness to adapt to new challenges and take advantage of new opportu- nities,” he said in 1982. “No plan can substitute for that. It had kept us prospering amidst years of change, and that’s the one thing we don’t intend

to change at all.”

RT T
RT T
the one thing we don’t intend to change at all.” RT T “Our job is to

“Our job is to open the eyes of the people to the benefits that life insurance provides.”

—Hermán Colín

CONTACTS:

Guadalupe Ayala

guadalupe.ayala@

metlife.com.mx

Hermán Colín hcolin@giosc.com.mx

PEOPLE

‘You’d make a great agent

Murphy followed a suggestion to immediate early success and business growth.

BY SCOTT ROGERS

G etting started in this business isn’t supposed to be easy. It’s not supposed to come naturally. You hear it again and

again — success comes after you’ve paid your dues. This is not how things went for Matthew Jo- seph Murphy, EPC, a three-year MDRT member from Calgary, Alberta, Canada. After spending the first 10 years of his life in Boston, Massachusetts, Murphy’s family moved

Murphy with his wife, Hailey.
Murphy with
his wife, Hailey.

to Toronto, Ontario, Canada. After attending col- lege in the area, he went to work for a bank. Initially starting out as a teller, Murphy slowly moved up the ranks. His goal was to end up as

a stockbroker, but after a few years, his desire

began to wane. In 2009, a life insurance agent by the name of Glenn Turner talked to Murphy about joining the field. “You’d make a great insurance agent,” Turner told him. This suggestion dovetailed with

a growing disillusionment Murphy had with his

banking career. “I wanted to genuinely help people. I felt my position at the bank was more about doing what was in the bank’s interest,” Murphy said, noting how in school he had been trained to preach fiduciary responsibility. Murphy also wanted the level of independence that comes with running your own business, something he knew he couldn’t get if he contin- ued at the bank. So he made the switch. Almost immediately, Murphy saw some suc- cess. With a goal in mind — qualifying for MDRT — and a receptive market, Murphy had a strong start to his career. After only a few years in the field, he was able to reach MDRT levels of pro- duction, qualifying for membership in 2012. After working for the first few years as an advisor for Freedom 55 Financial, Murphy struck out on his own in 2011, forming MYLIFE Financial Group Inc. His business has substantially evolved since then, he said. He started out as a one-man operation. Murphy’s business now has three agents on staff, all of whom have qualified for MDRT. Murphy takes pride in this, knowing that his staff members have obtained membership at such early stages in their career. “Each agent I’ve added since I’ve started, in their first full year, has qual- ified for MDRT,” he said. These members include Paul Jorge Botelho, a two-year MDRT member, and Christopher Lee Van Tornhout, a one-year MDRT member, both from Calgary, Alberta, Can- ada. “A lot has been me coaching my teammates to aspire to qualifying,” Murphy said. “I tell them, ‘It’s going to cost you $2,500 to attend the Annual Meeting; it’ll cost you $125,000 if you don’t.’” Individually, Murphy would like to reach the higher levels of MDRT, including Court of the

Table and Top of the Table. As far as his business goes, Murphy would like to grow MYLIFE into a five-agent, one-principal firm. “We want to reach deeper into the communi- ty, serve our community in the way we know we can,” he said. “Too often, people plan, but not well enough.” When it comes to prospecting, Murphy said his firm is very selective about whom they take on as clients. Though he wouldn’t describe his business as being “picky,” he said their clients need to fit their model. Murphy primarily targets small-business owners along with oil and gas executives. To reach these prospects, Murphy believes the best marketing is word of mouth, and thus he relies extensively on referrals. “I am very confident that every single prospect we have today came from referrals,” he said. Murphy credits MDRT with motivating him to grow his business. “Being a part of something on this scale is tremendously important for any individual who needs to stay motivated,” he said. “It’s impossible in this business to get anywhere on your own. You can’t find a better level of colleague than with MDRT.” Specifically, Murphy points to an idea he heard years ago from Bruce W. Etherington, CLU, CH.F.C., a 45-year MDRT member from Mississauga, Ontario, Canada, and then reheard at the 2014 MDRT Annual Meeting in Toronto. The idea concerns a method Etherington

Meeting in Toronto. The idea concerns a method Etherington Murphy with his two children, Jacob and

Murphy with his two children, Jacob and Savannah.

developed to boost his performance. One of the tenets of this plan is to focus on reviewing your top 20 clients on an annual basis. This was the idea that originally drove Murphy to achieve MDRT levels of production, and hearing it again at the 2014 Annual Meeting reminded him to revisit his top 20. So he made a note, posted it on his bulletin board, and went back to the well that got him on track in the first place. “Make sure you get to the meetings,” Murphy

said.

RT T
RT T
FOCUS SESSION SALES IDEAS/STRATEGIES 4. Preview I we have several — cases 10. Path LOOK
FOCUS SESSION
SALES IDEAS/STRATEGIES
4.
Preview
I we
have
several
— cases
10.
Path
LOOK INTO IT
The 12 P’s
When
we
go at and into
an
automobile
progress
today,
each
of which
has in
The
path
MDRT
and
to
quali-
dealer’s
showroom,
we
are
of there
lead In to ongoing that fact,
been
for
more
than
five
fying
for
is Top to
the
Table
and
to
see the
best
examples
their
years
believe
will
eventually
beyond
clearly
defined
and
will
Follow these steps
to boost your performance.
productivity
manufacturing
a sale.
Persistence
there
be
revealed
to
of you
one
step
a
CH.F.C.
capabilities
that
time.
is no substitute.
time.
It
took
me
three
years
By Bruce W. Etherington, CLU,
Our preview
is
exactly that.
“taking
the
stairs”
to
qualify
at of for
We
say this is
a
preview of what
7.
Passion
MDRT the first time in 1969. If
uring
course
of my
career,
developed
12
we
do and how
we
do it.
And if
Without passion,
you are either
it
weren’t for my friend George
D
principles
of business
everyone
should
example,
average or dead. With it comes
R. Merchant, a 49-year MDRT
you like this particular
know. the
Follow
these
to I achieve
believe greater I’ve
success
in
a
and
greatness; without it comes, at
Ontario,
then we will take
step back
member from Sarnia,
business and in life.
you
best, mediocrity.
My father, Joe,
me
design one with everything
Canada, who encouraged
To read all of Bruce Ether-
ington’s tips for improving
performance, check out “The
12 P’s” in the July/August
2014 issue of Round the Table.
These were developed by
Etherington throughout the
course of his career, leading
him to 37 Top of the Table
qualifications.
will
fit
and be
to
with
like or want that
who was a 40-year
icon and sales
get on the
MDRT path
1.
Prospects
into
your
a
simple sales idea, I may never
properly integrated
manager in the life insurance busi-
To
of your prospects,
you
overall financial
portfolio. But
have qualified
for and been
ex-
raise the bar on the quality
ness, told me that for the prospect
prospecting
the
sample. Be-
to
about an
greatest sales
must have a focused
process, which includes
only if you like
become lukewarm
posed to the world’s
had to be
organization.
your new clients
and existing clients on a regular basis.
cause if you don’t
like the sample,
idea, the salesperson
In
fact, the prospecting
if
method that has served me well
it doesn’t whet your appetite,
red hot. We fuel
the flame with
for
is a
waste our time in
11.
the past 48 years
then let’s not
Priorities
review of my top 20 clients on an
passion. What are you passionate
annual basis.
that
won’t
go
List
pursuing something
about in our profession?
your priorities
daily, weekly,
anywhere.
monthly, quarterly
and annually.
2.
Process
We’re showing
prospects what
8.
Prosperity
By
focusing daily and weekly on
To
be effective
with our time,
we must have
a
process
we
do, and a
little
bit
about how
Find a product
or service that can
your
most important
goals, your
with
we
do it.
priorities will become part of
that eliminates inefficiencies
and keeps us on track
add the prosperity
factor to your
regard to what to do and when to do it.
your DNA.
By focusing on our
clients’ lives, and then passionately
5.
Patience
proclaim it to the people you see
priorities, we are effective with
Once my company
has obtained a referral, we send
the
prospect a letter
in
deal-
The major objective
in accordance with their goals,
our
prospects; enhance, create and
with a copy of the letter to our client.
We
then allow
for a while in the
ing
is
to build
objectives and finances.
and regularly
the prospect to marinate
with our clients
refine our process;
knowledge that we will be calling. What this does is allow
a
trusting relationship,
which
with an
prepare for our meetings
your client
to
with your
overnight. It
9.
Professional
make contact
prospect and say
does not happen
effective preview.
a
will,
in many
happens only
Let it
few good words
about you. The prospect
with time, where
Be a pro and
let it show.
referred us.
the
12.
Personal faith
and ask why
show in your
dress and your
cases, call the client
she or he has
confidence factor outweighs
We then follow
through with a direct call to the client
the
uncertainty of where they
shirt, your
for me,
shoes, in your pressed
This is an important “P”
that is simple
and focused and keeps us on track. This
And
briefcase,
as
me to overcome
should place their trust.
crisp tie, your polished
it has helped
is
and effectively
in
showroom, your
MDRT
once the trust
factor is in place,
your prepared
many storms
in my life.
a process that allows me to efficiently
make telephone
on my
capable of put-
and the
advocates the Whole Person con-
calls and put new appointments
then we are quite
clean and efficient office,
calendar.
ting wisdom
and
knowledge on
setup your prospects
see when
cept, of which
one of the
seven
the
others help
they enter
your boardroom
or
table and helping
pillars is “spiritual.”
3.
Preparation
because it will
office.
Baseball Hall of
others. Be patient,
Fame player
Visualize what is going to happen with your upcoming
certainly separate you from most
These are all professional
Ernie Banks
once stood
on
of
the clan.
“putts” — little things that add up
and said,
MDRT’s Main Platform
meeting, and prepare for it. Prepare not only verbally
in
terms of what
you are going to
say, but also
prepare
to a winning round and make you
diamond:
“Life is like a baseball
psychologically for what,
6.
Persistence
second
in fact, the prospect is going
look like
a pro. Be a professional
First base is the physical,
to
say. The prospect
is
for
persis-
Enhance
third-base is
going to ask questions, is going
There is no substitute
resource for your clients.
base is the social,
to
ask for
reassurance, is going to ask you to account for
I
have found
their education
and knowledge
the
mental and home plate is the
tence. Over the years,
certain things that you are saying during the course of the
that the best
cases
usually require
about what
you do and
how you
spiritual. If you want to get safely
presentation. Preparation for both offense and defense is
the
best efforts
on my part
and a
do it, and do
it in a friendly,
pro-
home, you have got to have a spiri-
fessional manner.
extremely important.
great deal of persistence.
tual dimension to your life.”
n
36
ROUNDTHETABLE.ORG
JULY/AUGUST 2014
JULY/AUGUST 2014
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37
SALLY ELFORD/IKON IMAGES/CORBIS

CONTACT:

Matthew Murphy

matthew@

mylifefinancialgroup.com

PEOPLE

The drive for compliance

and success

How the rules of the road can guide your career ethics.

BY SCOTT S. PATERICK, CLU, CHFC

T he relationship between humans and au- tomobiles is long-standing. We remem- ber our first car, the process of getting

a license, great trips and any fender benders. This relationship has some parallels within our career in financial services. We remember our first client, the process of obtaining licenses and credentials, significant sales and any glitches along the way. The parallels run deeper, too, when we consid- er the privileges and responsibilities that come with operating a car and pursuing our profession. Driving opens up the opportunity to journey to new places, while serving as a financial advisor allows us to help others reach their destinations. If we stray from responsible driving practices, law enforcement stands ready to ticket us. If we deviate from adherence to ethical standards and legal obligations in our professional lives, there are regulatory bodies designated to address this. We all desire a clean driving record borne of a

commitment to safety and a perfect compliance record borne of a heartfelt commitment to our clients. To take these parallels even further, five phras- es of advice — ones actually given by driving in- structors — relate closely to our ethical attitudes and actions as financial advisors.

1. Look far down the road. These words identify

an essential practice of safe driving. Looking well down the road does not inhibit quick reaction to situations immediately in front of us; our brains and reflexes process these things quickly. But pay- ing attention only to what is right before us blocks our ability to anticipate potential problems or needed responses down the road. The relationship built with clients requires a similar kind of vision. We are in the relationship for the long haul, so at- tention should not be fixed on the immediate sale or the hot new product, but rather on the client’s stated goals and future well-being.

2. Develop good driving habits. Good driving habits

begin when we enter a vehicle: buckle up, adjust the mirrors, check the lights and gauges. When we do these things without fail, we hit the road in as safe a manner as possible. Our professional habits of safety and compliance should also draw us to

establish routines and do things consistently. Then,

if

ever questioned, we can say with confidence, this

is

what we always do in this situation, and we have

client files to document the routine. Roadways have their dangers. Similarly, a liti- gious environment presents us with perils along the course of our professional lives. The very best way to move ahead safely is to document every- thing, whether in paper files or secure electronic format. Routine. Documentation. These can seem tedious at times, but they are absolute necessities.

3. Know your vehicle. As we get familiar with

a car — something that occurs over time — we

become familiar with how it handles under duress, the way it sounds at peak performance, its idiosyncrasies and limitations. Our attention to getting to know our vehicle helps us care for it wisely and get the maximum from its potential. As financial professionals, we need to know our clients very well. The same kind of inquiry process that creates a wise automotive consumer should be the norm in approaching/assessing a new client. The needs, hopes, fears and ultimate goals of every single client are things each of us should know — and all of what we know is absolutely privileged information. As professionals, we need to adopt the code of confidentiality practiced by automotive racing teams — at no time do we ever disclose information about the makeup, handling, quirks or potential of a car or a client.

4. Never drive impaired or distracted. Legally,

operating a car while intoxicated runs the risk of punishment, often severe. Morally, such behavior crosses an ethical boundary by putting others at risk. In our industry, a relationship with a client is deemed impaired if there is any commingling of funds or if products have been misrepresent- ed. Either action invites legal consequences and regulatory reprimand. Distracted driving — texting or chatting on the

phone — may seem less dangerous. Studies show it is not, and neuroscientists tell us our brains cannot pay full attention to two things at once. In our profession, distractions can endanger the life of a client-provider relationship. Serving our cli- ents, in every contact and every context, demands full attention and singular focus. Distractions can be avoided by having a plan and practicing strict order, from having a checklist of documents to maintaining a thoroughly organized office.

5. Learn all laws, signage and rules of the road, and never assume you can’t become a better driver.

When we drive a car, it is vital for us to know such things as which side of the road to drive on, whether the speed is posted in miles or kilo- meters, and what a flashing yellow light means. Laws and signage vary from state to state and nation to nation, so we must know which ones apply where we are driving. Within our industry, we need to develop a thorough familiarity with all pertinent laws and regulations in the areas we service. Just as holding a driver’s license requires us to know a certain body of data, holding pro- fessional licenses/certifications in our industry requires thorough and up-to-date knowledge of its own significant body of data. The privilege of driving holds us to a standard of responsibility, as does the privilege of serving our clients. We can always become better drivers. From every experience on the road, we can learn how to anticipate problems, how to best control our vehi- cle and how to use new automotive technologies. We can also always become better service pro- viders. Experience informs us, but we must also be proactive in taking advantage of educational opportunities to learn in depth how the industry, the many companies and the products work. A closing note: This article contains references to many of the principles, tenets and requirements contained within the MDRT Code of Ethics. It is well worth reviewing the Code, on mdrt.org, as an essential part of our drive to achieve full compliance and ongoing success within our

profession.

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Members of the Bylaws and Ethics Committee contributed to this article.

the Bylaws and Ethics Committee contributed to this article. Driving opens up the opportu- nity to

Driving opens up the opportu- nity to journey to new places, while serving as a financial advisor allows us to help others reach their destinations.

PEOPLE

AGE FOTOSTOCK/HUAN TRAN

Planning what’s next

Engel partners with a young advisor to ease into retirement.

BY ELIZABETH FUHRMAN

R onald L. Engel, CLU, ChFC, had seen highly regarded, but older, financial advisors struggle to continue caring

for clients. Engel knew he didn’t want to get to the point where his age or health kept him from providing his clients with the best possible service. “In our industry, most of the people who have my business-type model — sole practitioner, writing 100 lives a year — didn’t normally bring on anyone when they retired,” said Engel, of St. Helena, California. “They just service their busi- ness until they die. It’s a huge issue because no one wants to give up their income, or feel that someone else can do their job better than they can. It’s hard.” Engel decided he wanted to be young enough to enjoy retirement, but the 35-year MDRT member, eight-time Top of the Table qualifier and two-time top producer for Principal Finan- cial Group was working 70-plus hours a week. For most of his career, he had operated with one administrative assistant. His practice was 90 percent life and disability insurance and 5 percent investment-type products. He practiced in San Jose and two hours away in St. Helena. It was obvious to Engel his current workload was too much. He tried working with a friend and partnering with other people in his office, but those relationships didn’t work out. About the same time, Engel’s company, Principal Financial Group, appointed someone who could assist with putting together his succession plan. Engel’s idea for his succession plan was seeing if he could work with someone prior to entering into a formal agreement. As luck would have it, in 2007, Kyle Tatro, a then 25-year-old finan- cial advisor, began at Principal with a focus in investment and retirement planning. Tatro’s office was next to Engel’s and, over the course of Tatro’s first year, Engel was able to observe his work ethic. Then Engel had one of his largest clients call him about bonds, a topic he knew very little about. He knew Tatro did, and ap- proached him about doing a joint case. The client loved Tatro, and in October 2008 Engel and Tatro started working together on variable-type business, such as variable annu-

ities, mutual funds and managed money. The two benefited from Engel’s expertise in insur- ance and Tatro’s experience in money manage- ment, equities, retirement planning and long- term care. “We started going together on sales calls where either my clients were getting ready to re- tire, or where the issue of retirement planning or long-term care came up,” Engel said. “The whole idea was we would do joint work, and it would grow the practice. He had the expertise, even though he is significantly younger than me, to do exactly what my clients needed because the industry went from life and disability insurance to financial services.” “The success rate we were having was 99.9 percent,” Tatro added. “It was just terrific from both ends. I was young and didn’t have a lot of people to go out and see. He had more clients than he could ever go see and try to keep up with. I got really lucky with Ron. He had great respect for his clients. They trust him, and that trust really just transferred over to me.” In addition to bringing in new business from existing clients, they also handled 50 to 100 new clients a year on the insurance side. It became obvious to Engel that Tatro should be his succes- sor. At the end of 2010, the two signed a succes- sion agreement that would start January 1, 2012, which was when Engel also signed a retired agent’s contract with Principal. Engel and Tatro began preparing for the transition through personal introductions to all of Engel’s A and B-plus clients, which were also those most apt to need Tatro’s services. When the succession plan began, Engel also sent out a letter to all of his clients that Tatro was the new junior associate in his practice. Though the two originally signed a five-year succession plan, they decided to make it a six-year plan after encountering staffing diffi- culties in the first year. Engel did not maintain an administrative assistant, and Tatro became responsible for all staff. Engel could now oversee the business and give advice. The two benefit equally on servicing all life and disability clients, and have arrangements set for equity sales. “A succession plan has to serve the needs of

the clients, the company, the successor advi- sor and the retiring advisor,” Engel said. The successor has to be prepared and knowledgeable enough to step into long-term client/advisor relationships, as well as help when needed in sales situations. “But they also have to make payments to you. If they can’t write the business, where is the income going to come from? Well, the way I did it was I’m doing joint work, and I go on a case for a certain percentage,” Engel said. “I knew that for a successful succession I would need to be very involved, and wanted both Kyle and me to be fairly compensated if the succession plan was successful.” Engel also knew that he needed to train Tatro in some areas to transfer the relationship. “Transferring the relationship is the key to a successful succession plan,” Engel said. While the two enjoy working together and the transition is going well, it has not been without its challenges. With a young family at home, Tatro couldn’t work the 70-plus hours Engel did. They also differ in business operating styles, with Tatro incorporating more technology and working on moving the business to a paperless model. As of last year, Tatro or his administrative assistant handle all phone calls and then deter- mine whether he or Engel should return the call. Engel also transferred all but 1 percent of his business into Tatro’s name to help maximize contracts. In turn, Engel has gone from working approx- imately 60 hours a week at the beginning of the succession plan to around 40 hours per week last year. This year, his plan is to go down to 30 hours a week. Engel plans to travel, keep himself out of the office and do less micromanaging. Tatro, though, plans to keep Engel involved in the business in some way. “My hope for the transition and the succession plan is that I can always utilize Ron as a tool in the future, and I think that will always be there,” Tatro said. “He’s a great mentor, and I learn from

him every time I sit down with him.”

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“The whole idea was we would do joint work, and it would grow the practice.”

we would do joint work, and it would grow the practice.” MDRT PODCAST For more infor-

MDRT PODCAST For more infor- mation on succession planning, visit mdrt.org/ podcast. Episode two on succession planning is now available.

Elizabeth Fuhrman is a freelance writer and editor.

MDRT MDRT STORE STORE

Focused Focused on on Your Your Success Success

VisitVisit mdrtstore.orgmdrtstore.org toto findfind youryour nextnext greatgreat idea.idea.
VisitVisit mdrtstore.orgmdrtstore.org toto findfind youryour nextnext greatgreat idea.idea.

Shop educational products and MDRT branded merchandise online.

educational products and MDRT branded merchandise online. Books Meeting Presentations Insignia Collection Multimedia

Books

Meeting Presentations

Insignia Collection

and MDRT branded merchandise online. Books Meeting Presentations Insignia Collection Multimedia Member Plaques Video Club

Multimedia

Member Plaques

Video Club

PEOPLE

Q &

PEOPLE Q & A Glenda Miro Antonio Location: Cebu City, Philippines Membership stats: 6-year MDRT member

A

Glenda Miro Antonio

PEOPLE Q & A Glenda Miro Antonio Location: Cebu City, Philippines Membership stats: 6-year MDRT member

Location: Cebu City, Philippines Membership stats: 6-year MDRT member MDRT involvement: Pre- and Post-Retirement Committee

MDRT involvement: Pre- and Post-Retirement Committee In MDRT, if we grow because of someone, we move

In MDRT, if we grow because of someone, we move forward to help someone else grow as well.

How do you describe your practice?

I do comprehensive financial planning services

with a focus on leading people and organizations to attain ultimate financial sustainability. I am also involved with philanthropic consulting for donors and benefactors through the creation of charitable planning programs. This allows them to sustain their giving to chosen charities. It has also extended my service to faith-based organiza- tions and church groups in coaching them to be ready to receive donations and develop initiatives for their mission.

What is your best marketing tip? Keep sincere and genuine service as the core value of your profession. It is essential to connect with the niche market attracted to the passion of what you do.

What do you find most fascinating about our profession? Believing what we do provides a better life for the people and organizations entrusted in our care fuels our passion to do more. What we do becomes a solution for the very moment when everything else stops. It fascinates me that, aside from a career, this is a very noble calling to serve and impact humanity.

How do you stay motivated month to month?

I always bear in mind that motivation has to

come from within. What keeps me motivated is that, for me, this work is a calling to serve. I have been blessed with clients referred one after the other, and I cannot help but stay motivated to be there for them when they need me to pre- pare their future. I find it an honor to be in this profession.

What is the main benefit of attending an MDRT meeting? Attending an MDRT meeting always makes me renew and refresh everything I had been doing professionally. The impact and inspiration of connecting to the right people attending the meeting can only be described when you are physically there. That sense of connectedness, the opportunity to meet fellow MDRT members, the chance to share innova- tions and ideas to keep us moving forward, and that acknowledgment that every success is truly possible is not just wishful thinking. In MDRT, if we grow because of someone, we move forward to help someone else grow as well.

What tips would you give to new advisors? Stay focused and invest in learning for profes- sional growth. This will further enhance one’s profession. Aim for excellence, and make it to the MDRT Annual Meeting year after year. Develop one’s niche market — the type of clientele who can truly benefit and align with the passion of what you do.

What are your interests outside of business?

I have an interest in music, and I direct and orga- nize stage productions for a local charity.

Where do you see yourself in 10 years?

I see myself staying very connected with my

husband and daughter, as well as maintaining my professional service to more clients who entrust their future to me. I also will continue to be in-

volved with MDRT.

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Contact Glenda Antonio at glendaantonio@yahoo.com.

STRAIGHT TO THE SOURCE One of my existing clients referred me to a high-net-worth construction

STRAIGHT TO THE SOURCE

One of my existing clients referred me to a high-net-worth construction company owner, whose accountant was against insurance. I had eight meetings with this accountant and made every effort to explain insurance by quoting him examples and explaining human life value. Every time, he calculated returns in Excel and ignored the proposal. Talking to his accountant was a waste of time and energy, so I contacted the owner directly and informed him that I would like to meet him personally. I knew the owner genuinely required insur- ance, as he had raised loans for completing projects. The owner agreed to a 10-minute meeting with both me and his accountant. I thought, if I do something creative, this meeting will be fruitful. On the day of the meeting, I casually started talking with them and asked one question: “Sir, which car do you drive?” The owner replied, “I drive a Mercedes-Benz.” I asked the accountant the same question and he replied, “I drive a Ford Fiesta because it gets good mileage and has good resale value.” I then questioned the owner about his more luxurious choices. After the owner defended his decisions, I gently told him, “Sir, insurance is not a luxury product like your Mercedes. It is an essential product and a decision you should make yourself.” He agreed and instructed his accountant to deliver me a check. Though he was skeptical at first, eventually that accountant also became a good client.

— Nikhil Jitendra Anandpara, Mumbai, India, 12-year member

If you’re not in a place to have a staff, don’t overextend. Attach to a
If you’re not in a place to have a
staff, don’t overextend. Attach to a
general agent, and take advantage
of their staff for free.
— David M. Ethell, LUTCF
Camarillo, California, 13-year member

40 40

ROUND theTABLE.ORG | MARCH/APRIL 2015

ROUND theTABLE.ORG | MARCH/APRIL 2015

MARCH/APRIL 2015 ROUND the TABLE.ORG | MARCH/APRIL 2015 SPECIAL TOUCH When clients or prospective clients come

SPECIAL TOUCH

2015 ROUND the TABLE.ORG | MARCH/APRIL 2015 SPECIAL TOUCH When clients or prospective clients come to

When clients or prospective clients come to your office, reserve a parking space with their name on it. If they have

a

child or grandchild, have a trophy made with a baby on

it

noting the date of birth, height, weight and name.

— Anthony G. Engrassia, LUTCF, ChFC Battleboro, North Carolina, 19-year member

YOUR HOBBIES Golf has historically been a great place to meet new prospects and to

YOUR HOBBIES

YOUR HOBBIES Golf has historically been a great place to meet new prospects and to spend

Golf has historically been a great place to meet

new prospects and to spend time networking with

existing clients. But not everyone enjoys golf, and

it is easy to spot an agent who is faking it just to

prospect for new clients. Instead of faking it, use

hobbies you enjoy to create more meaningful rela-

tionships with potential clients. It can be running,

fishing, shooting guns, wine tasting, etc.

— Matthew T. Hoesly, CFP, ChFC

Norfolk, Virginia, 6-year member

insideMDRT 2016 MDRT requirements 43 | Annual Meeting update 46 MDRT Foundation 50 | Results

MDRT

inside MDRT 2016 MDRT requirements 43 | Annual Meeting update 46 MDRT Foundation 50 | Results

2016 MDRT requirements 43 | Annual Meeting update 46 MDRT Foundation 50 | Results of Cost of Doing Business survey 52

50 | Results of Cost of Doing Business survey 52 WHAT DO YOU DO? 35% of

WHAT DO YOU DO?

35% of respondents identified their practice as providing “full financial planning” in 2013.

Only 24% did in 2010.

— MDRT’s 2013 Cost of Doing Business Survey

SADDLE UP

During the Depression, one Wyoming MDRT member rode 80 miles round- trip on horseback to sell a $2,000 policy.

GLOBAL MEMBERS

MDRT welcomed its first

members from outside the U.S. in the 1930s, including

three members from Japan and one from South Africa.

SUCCESSFUL WOMEN

U.S. female MDRT mentors increased commissions by 17.2% from 2013 to 2014.

MDRT STORE Insignia Collection As a member you can display your commitment to excellence with

MDRT STORE

Insignia Collection

As a member you can display your commitment to excellence with the MDRT logo. The Insignia Collection offers one-of-a-kind branded merchandise to commemorate your membership in style.

Visit mdrtstore.org to view the complete collection.

membership in style. Visit mdrtstore.org to view the complete collection. 42 ROUND the TABLE.ORG | MARCH/APRIL
membership in style. Visit mdrtstore.org to view the complete collection. 42 ROUND the TABLE.ORG | MARCH/APRIL

INSIDE MDRT

Developing production requirements

MDRT creates a formula that takes volatility out of numbers for 2016.

a formula that takes volatility out of numbers for 2016. A thorough investigation identified a few

A thorough investigation identified a few alternative sources of comprehensive data, including the International Monetary Fund’s Consumer Price Index and measures from the Organization of Economic Cooperation and Development. After considering data availabil- ity and the timeliness of updates to the data, the PPP measures were determined to be the most robust, comprehensive and timely data source as the foundation for the production requirements. Implementing the PPP updates with a simple moving average would capture the breadth of the data, while minimizing volatility. The second goal was to determine if there

>>

BY JUDY XANTHOPOULOS, PH.D.

M eeting MDRT’s produc- tion requirements is a goal that, once reached,

members want to continue reaching. But sometimes external factors, such as market volatility and lack of demand for life insurance within a specific country, can ham- per even the most determined member’s efforts. To make sure production numbers take individual country activity into account, MDRT began reviewing the methods used to establish production requirements in January 2014. After careful consideration, the Executive Committee recently adopted a formula that blends informa- tion from a variety of sources. One of the data sources is the respected, third-party calculations provided by the World Bank’s Purchasing Power Parity (PPP). These values are implemented with moving averages to reduce volatility and supplemented with data from the United Nations to capture each nation’s development level. One of the main goals of MDRT’s analysis was to evaluate the existing methods for creating production numbers, which relied on annual updates to the PPP calculations to establish membership requirements. One problem the study found was that using only PPP could introduce substantial volatility in the annual production requirements, impacting the ability of current members to continue qualifying. Therefore, the focus became identifying a sys- tem that provides periodic updates yet minimiz- es volatility.

INSIDE MDRT

INSIDE MDRT

was another system that might improve, enhance or enrich the information used in the current sys- tem. This meant addressing past questions and concerns regarding differences in each country’s life insurance market (including variability in the product offerings, social and cultural differ- ences in the demand for life insurance, as well as market differences between developed and developing economies). After evaluating the PPP measures, it was time to consider if there were other parameters that might address these mar- ket-based differences. The committee considered insurance data available on a country-by-country basis, but found insufficient country coverage and avail- ability. Ultimately, the research led to analysis of the Human Development Index (HDI), which is developed and produced by the United Nations. The HDI measures development by combining indicators of life expectancy, educational attain- ment and income into a composite index. The single statistic serves as a frame of reference for both social and economic development. The HDI has also been shown to be a good proxy for life insurance market characteristics. Together, the HDI and the PPP moving averag- es have the effect of smoothing the year-to-year volatility, as well as market differences. Last, consideration was given regarding un- usual circumstances in which the requirements might still increase dramatically, despite the miti- gating effects of the PPP moving averages and the HDI parameter. To address these rare instances, the new methodology employs a formula for lim- iting annual increases, referred to colloquially as “guardrails.” Because the U.S. requirement serves as the basis for establishing relatively equivalent requirements for other countries, adjustments to the requirements will not exceed two times the Consumer Price Index for the U.S. This extensive and thorough process provides MDRT with a new methodology for establishing requirements for 2016 that better reflect produc- tion and track changes in economic performance and developmental circumstances in each coun- try, while maintaining uniform requirements to enable members to qualify on a more consistent

basis.

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COUNTRY

COMMISSION

PREMIUM

INCOME

ANGOLA

82,800

165,600

142,200

ANGUILLA

46,900

93,800

80,600

ANTIGUA

133,600

267,200

229,700

ARGENTINA

201,000

402,000

345,800

ARMENIA

13,533,200

27,066,400

23,277,100

ARUBA

86,400

172,800

148,600

AUSTRALIA

132,300

264,600

227,600

AZERBAIJAN

38,500

77,000

66,200

BAHAMAS

72,500

145,000

124,700

BAHRAIN

25,500

51,000

43,900

BANGLADESH

2,354,600

2,025,400

1,177,300

BARBADOS

113,400

226,800

195,000

BELARUS

69,942,200

139,884,400

120,300,500

BELGIUM

82,700

165,400

142,200

BELIZE

86,200

172,400

148,300

BERMUDA

131,100

262,200

225,500

BOLIVIA

266,800

533,600

458,900

BOSNIA-HERZEGOVINA

47,100

94,200

81,000

BOTSWANA

230,000

460,000

395,600

BRAZIL

142,500

427,500

245,100

BRITISH VIRGIN ISLANDS

92,000

184,000

158,200

BRUNEI

54,100

162,300

93,000

BULGARIA

55,200

110,400

94,900

CAMBODIA

67,738,000

270,952,000

116,509,300

CANADA

116,100

232,200

199,700

CAYMAN ISLANDS

59,200

118,400

101,800

CHANNEL ISLANDS

56,000

112,000

96,300

CHILE

28,786,800

57,573,600

49,513,300

COLOMBIA

76,214,100

152,428,200

131,088,200

COSTA RICA

19,430,500

38,861,000

33,420,500

CROATIA

349,600

699,200

601,300

CURACAO

65,500

131,000

112,500

CYPRUS

36,600

73,200

63,100

CZECH REPUBLIC

1,276,100

2,552,200

2,194,900

DOMINICA

115,900

231,800

199,300

DOMINICAN REPUBLIC

1,162,200

2,324,400

1,998,900

ECUADOR

40,600

81,200

69,800

EGYPT

147,200

441,600

253,200

EL SALVADOR

42,200

84,400

72,600

ESTONIA

642,000

1,284,000

1,104,400

FIJI ISLANDS

68,800

137,600

118,300

FRANCE

82,800

165,600

142,400

COUNTRY

COMMISSION

PREMIUM

INCOME

COUNTRY

COMMISSION

PREMIUM

INCOME

GERMANY

82,800

165,600

142,400

PANAMA

55,000

110,000

94,600

GHANA

140,046,000

280,092,000

240,879,100

PERU

138,000

276,000

237,400

GREECE

59,300

118,600

102,000

PHILIPPINES

1,177,600

2,355,200

2,025,500

GRENADA

162,400

324,800

279,300

POLAND

165,000

330,000

283,800

GUATEMALA

377,200

754,400

648,800

PORTUGAL

64,400

193,200

110,800

GUYANA

3,996,200

7,992,400

6,873,500

QATAR

228,700

457,400

393,400

HONDURAS

616,400

1,232,800

1,060,200

REPUBLIC OF KOREA

73,029,600

182,574,000

125,610,900

HONG KONG SAR

552,000

2,208,000

949,400

ROMANIA

124,500

249,000

214,100

HUNGARY

11,095,200

22,190,400

19,803,700

RUSSIA

1,143,000

2,857,500

1,966,000

INDIA

845,300

3,381,200

1,453,900

SAUDI ARABIA

266,800

533,600

458,900

INDONESIA

271,740,400

543,480,800

467,393,500

SERBIA

2,612,500

5,225,000

4,493,500

IRELAND

82,800

165,600

142,400

SINGAPORE

128,500

385,500

221,000

ISLE OF MAN

56,000

112,000

96,300

SLOVAKIA

56,400

112,800

97,000

ISRAEL

308,000

616,000

529,700

SLOVENIA

71,400

142,800

122,800

ITALY

73,500

147,000

126,400

SOUTH AFRICA

259,300

518,600

446,000

JAMAICA WEST INDIES

3,994,500

7,989,000

6,870,600

SPAIN

73,600

147,200

126,600

JAPAN

12,069,700

36,209,100

20,759,900

SRI LANKA

2,401,800

4,803,600

4,131,100

JORDAN

27,600

55,200

47,500

ST. KITTS AND NEVIS

124,500

249,000

214,000

KAZAKHSTAN

4,744,800

9,489,600

8,161,100

ST. LUCIA

165,100

330,200

284,000

KENYA

3,293,600

6,587,200

5,665,000

ST. MAARTEN

65,500

131,000

112,500

KUWAIT

27,500

55,000

47,300

ST. VINCENT

165,100

330,200

284,000

LATVIA

27,600

55,200

47,500

SURINAME

18,919,300

37,838,600

32,541,300