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OF THE EAST BAY

Financial Planning Association of the East Bay

A Gold Level Chapter of the FPA for the 6th Consecutive Year!

Tips From the Monthly

"Financial Planning Moment"

January

To kick off this new feature of the meetings this year, President Gary Gardner shared with us Mind Mapping, which is a technique for taking random thoughts that come about during brainstorming sessions and grouping them in a way which can provide structure for the project on which you are working.  He gave a few examples of how it works through a computerized application of the process, though it can be done with paper and pencil, too.  But using the computer, it can automatically generate outlines, facilitate moving items from one main area to another, and overall add ease and simplicity to the process.  Click here to learn more about the one he uses, which is MindJet.com:

February

Since nobody else stepped forward and he didn't want to appoint a volunteer yet, President Gary Gardner introduced us to a few technology tools he is using in his practice that he feels has improved his productivity.

First, he mentioned GoToMyPC, a website which lets you connect to your home or office computer via the internet from an other computer in the world.  This lets you get work done, check e-mail, and much more while you are away from the computer you need to access.  BUT - a great feature it has now is the ability to run remote meetings with clients, sharing with them (on their own computer screen) what you want them to see, all while chatting with them on the phone.  Known as "remote collaboration", it's almost like being there, but having to get them coffee!  Check them out at http://www.GoToMyPC.com by clicking this link:

He also briefly mentioned a free service that's similar, at a website called LogMeIn.com which is at this site:

Next Gary shared how he's taking care of preparing notes immediately after a client meeting.  He dictates them over the phone in 4-minute increments to a remote dictation service overseas, then receives back a text document which he can then review, modify, and pass along for filing or staff action.  Discussion ensued about various "voice recognition" software which "types as you talk" which is similar.  (Perhaps someone will talk about that in a future meeting and get their free breakfast?)  The website name is Copytalk.com and you can access it by clicking this link:

Finally, he touched on URLTrends.com, a website which not only lets you add a "hit counter" to your website, but then helps you to better understand the data that it accumulates and assists in maximizing your internet visibility.  Learn more at:

March

Board member Steven "Shags" Shagrin shared a practice tool that helps him better understand the financial habits and attitudes of his prospects so he can better explain the services he offers in a way which resonates.  The tool is a simple deck of cards called "Money Habitudes®", which stands for Habits and Attitudes.  It helps to uncover the unconscious and often unexplored "habitudes" around money that we all have, regardless of our practical expertise.

Developed by Syble Solomon of LifeWise in Rockville, Maryland, it provides financial planners with an engaging and easy way to help clients address the issues that impact how they save, spend, earn, invest, go into debt, and give away their money.  It helps you to discover the real issues that make people argue, act irrationally, or keep them from reaching their financial and life goals.

The cards help to identify the primary Habitudes of the person sorting them into piles that are titled "That's Me", "That's Not Me", or "That's Sometimes Me or That's Partially True".  These primary habitudes are: Security, Targeted Goals, Status, Selfless, Spontaneous, and Free Sprit.  Interpretation cards are provided which guide the conversation around how this Habitude may be seen by others, the advantages and challenges of having it prevalent in their life, and ways to bring more understanding and balance into one's life around money.

Syble has also produced a Guide Book which is helpful in taking clients through additional work and understanding about how to best prepare for handling money issues that are typically challenging to them.  It also has profile grids to focus on important facets of what might be appropriate approaches for that specific Habitude.  The cards and the guide are priced at $14.95 apiece.  Quantity discounts are available.

Shags shared that he uses the cards as a way for prospects to pass time while he reviews the information he asks them to bring in for their first meeting.  Rather than the prospect looking around the office or twiddling their thumbs, he has them "play" the card game.  He then reviews the card selections and discusses his observations with the prospect to make sure he's on the right path.  Then, with a better understanding of how the prospect tends to think about and handle money, he tailors his service presentation in a way which resonates better with the prospect and their Habitudes.  For example, he wouldn't talk about budgeting with a spontaneous person, at least not right away.  Knowing that a person is spontaneous helps him to be more gentle when pointing out the challenges of not preparing a budget for life's needs.

For more information, visit http://www.MoneyHabitudes.com

April

George H. Coughlin II was today's practice tip presenter, and it was a fantastic demonstration of how technology can help you stay in compliance with the CFP Code of Ethics and Professional Responsibity.  Principle 5 and the Rules 500 Series covers confidentiality and how client information is to be revealed and includes, in part, "For purposes of this rule, the proscribed use of client information is improper whether or not it actually causes harm to the client."  George then pointed out that having any client information anywhere on a computer disk, fixed or removable, that can be viewed or accessed without being locked or encrypted is a violation of this requirement of confidentiality.

George suggested that it's not enough to physically secure your equipment by a cable-lock, that using the password features of Windows is not enough, and firewalls or spam filters are not enough.  He then offered a solution to this conundrum:  file encryption and extremely long and complex passwords.

However, he shared, it doesn't have to be a chore.  George introduced us to a FREE "on-the-fly" disk encryption software that works on hard drives or storage devices such as USB flash drives called TrueCrypt 4.3.  He distributed a handout with information about the software and then gave us a demonstration of how it operates on his notebook computer.  Their website is http://www.truecrypt.org and again, it's FREE!

But what about those long and complex passwords he suggests we create?  George then demonstrated the use of a little device that works using biometric technology:  a fingerprint reader.  This plugs into your USB port and lets you store all your usernames and passwords (in encrypted form, per above!) and log onto your computer and access your passworded websites, files, etc., with the touch of your finger.  It lists for around $55 but can be found at local office supply stores and on the internet for around $35.

The combination of these two powerful and economical tools gives you the client information protection you should have in place to keep it safe should your computer be stolen or otherwise hacked into by an unauthorized individual.  Thanks for the great tip, George!

May

Silver Sponsor David Shaffer (Mortgage and Insurance Services) provided this month's practice tip:  Tools to Implement a Personal Property and Casualty Risk Management Review for Your Clients.

Aside from being a good way to reduce professional liability insurance risk by being thorough and comprehensive in your planning services, it's a benefit to the client to make sure their risk management coverage is adequate for their present and projected net worth.

David offered us the acronym DATE:  Data gathering, Analysis, Take action, and Examination, in performing your annual review or in determining your need to outsource that with which you are not thoroughly familiar (the latter being a "double DATE"!).

His handout included spreadsheet presentations of the cost of personal umbrella liability coverage on a per-day basis, comparing it to the cost of a coffee latte at Starbucks.  And as coverage needs increase as does net worth, consider a high deductible (such as $10,000) based on the likelihood of loss and the difference in premium, which -- if saved & invested -- may accumulate to the deductible amount before a loss in incurred and it is needed.

Also in the handout is a Personal Property and Casualty Insurance Review checklist form to prompt a client for all the documents and information needed to undertake a thorough and complete DATE; a copy of the article "To Claim or Not To Claim…That is the Question" that David authored and which appeared in a trade publication; and other resources for your clients (such as appraisers and earthquate retrofitting).

Click Here for a copy of David's handout in PDF format.

Here are useful links for more information about our Chapter, its activities, the FPA and more.