Everyone is different.

That's what the interview process is for.

Yep, we're conduct an extended interview process, to make sure it's a fit and not just a hire.

What I'm getting at is, I'd like to benefit from the perspective of a younger advisor - and have that person work with thirty and fourty year old clients who are doing comprehensive financial planning, and a full range of product solutions - insurance and investments.

So, how important is learning to be be a "real" financial advisor versus just selling and making a lot of money. It comes down to the individual. So, for anyone here who might be looking for a situation to take on a mentor, what would you be looking for in a situation?

What would keep you motivated. And, if you had some years of experience in selling insurance and wanted to move on to a situation where you could be mentored more in portfolio construction, but still be responsible for developing new business - part of your time this and that - and you were paid a salary, which is attractive because you are somewhat burned out but still love the business - would you have any ideas on how to structure your job in a way that is motivating?

[quote=fluor]

What would keep you motivated. And, if you had some years of experience in selling insurance and wanted to move on to a situation where you could be mentored more in portfolio construction, but still be responsible for developing new business - part of your time this and that - and you were paid a salary, which is attractive because you are somewhat burned out but still love the business - would you have any ideas on how to structure your job in a way that is motivating?

[/quote]

In my experience, the more intellectual the person becomes, the less the sales side of the business appeals to you. Probably the most important thing in a mentoring relationship is that real mentoring occurs.

So I think the element of continuing education would be important. Otherwise you are looking for people who like helping other people, and can see customers as something other than a paycheck.

A good time to bring up selling. For myself, the "selling" is about moving from concepts to taking appropriate action, find out where the person is coming from and helping them to think about their stated goals in sometimes new and creative ways, giving the client the space to come to their own conclusion about doing the best alternative and so on.

To even think of yourself as being professional in this business, continuing education is how we keep track - so, for example, I want to encourage pursuit of the CFP designation, perhaps starting in year two, so I could pay for that, I guess that would be good motivation for the right person.

I would never hire someone who is unlike myself in seeing clients as coming first - doing the right thing is not always easy when it comes to money, but doing the right thing should come naturally.

You bring up good food for thought.

And I do have nut to crack in terms of paying a nice salary to the right person, so especially any younger advisors, please help me out with a few thoughts if you are so inclined.

I am a twenty something FA.  I may be able to provide some insight?!

My mentor is in his 60's and we get along like Father and Daughter.. Actually better. I call him when I am having a bad day and when I want to share my joys. i.e. landing a big client, hitting my goals

What I want from my mentor-  I want honesty all the time. I want to know what I am doing that is working for me as well as the areas in room of improvement. Sugar coating things doesn't suit my personality and in truth I want him to REALLY help me improve thus allowing me to succeed. 

Ever newbie knows the odds of them making it.. I have never once thought I couldn't make it.. I sometimes wonder why I get lax on the work aspect for making my contacts. Most new FA's also don't want to ask for help, this is to their detriment. I want the advice and I have the williness to accept the imput and use it effectively.  With the help of my mentor we plan out my business actions  i.e. making a business plan, laying out a strategy for how to successfully obtain the goals. These are  daily goals as well as monthly and yearly.  When I get a bad attitude about the work I revampt the plan and come up with a new plan. A plan I can get on board with again and one I am willing to do.

Motivation for me is driven by doing a good job and making LOADS of money..  Bottom line.. I would not be motivated if I wasn't making the money I thought I should be. 

Sometimes I think again on why I got into this business and try to refocus.

That's my newbie two cents.

Well, Ms. Jones, you newby two cents is appreciated.

My observation is, the honesty you require means you are fairly paid and are given realistic goals and the tools to be successful.

Of course, a lot of training programs are set up to accrete the labor of those who fail, so in a true mentoring relationship both parties have an obligation to help ensure success.

So you have daily, weekly and monthly goals, and when things get off track, as you monitor the plan, you adjust the plan.

If you were working on salary and there was a bonus tied to the profitability of the business, would you be willing to throw out a number on the percentage of profitability that comes from new business you bring in?

And in this case, you might be working with some smaller accounts, so if you bring in new money, or generate referrals off the smaller accounts you are servicing, this of course counts as new business.

And are you expected to do any cold business development?

And is any young person out there developing some new client relationships by servicing the 401k allocation questions of some smaller accounts, possibly doing lunches near the workplace of a current client who brings a couple of friends to lunch to talk about the company retirement plan investment options at a group level?

Just an idea I have.

[quote=MISS JONES]

I am a twenty something FA.  I may be able to provide some insight?!

My mentor is in his 60's and we get along like Father and Daughter.. Actually better. I call him when I am having a bad day and when I want to share my joys. i.e. landing a big client, hitting my goals

What I want from my mentor-  I want honesty all the time. I want to know what I am doing that is working for me as well as the areas in room of improvement. Sugar coating things doesn't suit my personality and in truth I want him to REALLY help me improve thus allowing me to succeed. 

Ever newbie knows the odds of them making it.. I have never once thought I couldn't make it.. I sometimes wonder why I get lax on the work aspect for making my contacts. Most new FA's also don't want to ask for help, this is to their detriment. I want the advice and I have the williness to accept the imput and use it effectively.  With the help of my mentor we plan out my business actions  i.e. making a business plan, laying out a strategy for how to successfully obtain the goals. These are  daily goals as well as monthly and yearly.  When I get a bad attitude about the work I revampt the plan and come up with a new plan. A plan I can get on board with again and one I am willing to do.

Motivation for me is driven by doing a good job and making LOADS of money..  Bottom line.. I would not be motivated if I wasn't making the money I thought I should be. 

Sometimes I think again on why I got into this business and try to refocus.

That's my newbie two cents.

[/quote]

Kill the old coot then you can inherit his book of business.

:). Put me out of my misery. Longevity is a national disaster.

More of my newbie two cents:

To Answer Flour- Q. If you were working on salary and there was a bonus tied to the profitability of the business, would you be willing to throw out a number on the percentage of profitability that comes from new business you bring in?

I worked on a salary for my first year. (the year ends next month) Please don't be confused, it was a is not enough to pay the bills but I knew that I didn't take the job so I could live off my salary. I also get bonuses once every 5-7 months based on reaching and then holding my goals for a set time. The last bonus I recieved was for $5000. I have no idea on this profitablity item you have brought up.. I only know that I must increase my numbers... Since January I have only grossed 124,027 so I have no clue if that makes me 'profitable' but I seriously doubt it.

I also Manage a few small 401K's but one of the plans is much larger it has around 2.8 million in the plan with 50+ employees. I have spun off some good leads and clients from doing their reviews. I personally wish I had a few more of these plans because the business has been so well.  I do investment classes for the employees which has lead to many additional appointments. 

Q. For cold development- In truth I am SOOO tired doing business this way..(cold calling, cold walking) I do need to fill my pipeline so my cold development business comes from Seminars and referrals.  I find my closing ratio when I can get in front of prospects is EXCELLENT, so this is my perferred method.

Hope this helps answer some more of those questions.

Thanks, that's great. From my point of view, my business plan, I think your production is terrific if you are talking about Gross Dealer Concession.

You have given me the idea to base the bonus on hitting activity goals, versus a total focus on production.

Getting in front of people and showing them who you are is really the best and only way to develop business - if you did not chase them to get the meeting, you are being professional, always a huge plus.

I am wondering if you are being taught consultative selling skills, just a label for certain techniques, I tried to post that topic in the rookie area where I belong.

Two Cents-

Q. I am wondering if you are being taught consultative selling skills, just a label for certain techniques, I tried to post that topic in the rookie area where I belong

A.- No one taught me the technique but after a few appointments. I found I wasn't getting to the 'meat' that I needed from my discussions with my prospects. I created a questionnaire that asks every question you would need to get from a client in order to help them come up with a financial plan. In my questionnaire I ask about their parents and their current health. I also ask about their children and whether they are married with kids and if they live in town. Sometimes I find possible 529 for grandkids or kids, plus I get referrals  (kids/parents). These questions helped me to find out if they have struggles they are dealing (wife is not talking with the daughter and so they don't want her listed on their IRA's) The biggest advantage for asking these parental questions is I find out if they will be receiving any inheritances down the line.

I ask for the CPA and Attorney they use. Once I have this information I ask for permission to call them. I call the professionals and let them know their client is now working with me and ask them if they have any information that they deem necessary for me to know.. This makes them feel important and normally provides me with information I almost always use.

Are these the types of consultative skills you were referring too. If not please help.. I am always up for a new and easier way to get ahead.

- Newbie

Wow, absolutely, you are way on the consultative track.

The first part is asking the questions, then there is implementation (like really talking to the CPA and gently following the family connections).

Another area, in my mind, is the dynamics of the meeting itself. For example, when discovering the goals, facts, and how a client feels about their money and where they are going with it, we spend a lot of time on cash reserves, and relating this area to financial freedom.

So, if the areas are cash reserve, protection, investments, taxes, estate planning, retirement and short term goals, we spend a lot of time talking about discretionary income, tax exempt investing, creating dividend income - in a conceptual sort of way, we develop a lot of financial planning concepts in the first meeting, along with the listening and questionaire data gathering that you describe.

Anyway, just trying to get a dialog going here on how others handle the financial planning process.

As you know, if you focus on listening and developing concepts, the "selling" is really just getting clients to take that first step to implement one of your ideas, and this begins to turn the traditional selling scarlet letter of our profession on its head - and makes for success and a very solid client base.

There are a lot of subtle consultative techniques you develop over the years, one of the things that  makes this business so cool, I'm not very good at describing them.

Fluor- Thanks, I like some of the items you mentioned. I will add those to my questionnaire. Any time you think of something else, please let me know.

Thanks again, Miss

You got it, Miss J. I wish I could combine my experience with your enthusiasm for the business. I guess whatever you do, every day you have to get up with a fresh perspective. I plan to work until my brain doesn't.  This is a great place to trade insights.