News You Can Use
This issue's article is by Lisa Gray, President/CEO of graymatter STRATEGIES LLC, a consulting firm based in Memphis, TN whose purpose is to help advisors raise the level of their relationships with their clients.

"The Human Element" By: Lisa Gray Often when advisors consider their clients' 'human capital,' they think in terms of the future earnings potential of the client through the balance of his or her working life. This is a valid definition, but certainly not the most important one. Individuals and families of wealth have many more aspects of human capital at their disposal. When considering family wealth, the most complex human capital considerations lie within the structure of the family office. Innately, there is human capital within the family in the form of a spouse or children. Human capital exists in the staff of the family office. Employees of a family business are also part of the human capital picture. Future human capital expands from future earnings to upcoming and future generations. Even an unmarried individual of wealth will, in many cases, have siblings, nieces, nephews, and perhaps some sort of personal or business staff who look after his or her personal business affairs as well as a lucrative career or successful business enterprise. Viewed in this light, the issue of human capital becomes a great deal more than future earnings power. How do the various forms of human capital affect wealth management? It depends on the type of human capital under consideration. It's quite obvious that spouses or children may be involved in a family business and may be considered human capital components in the proliferation of the wealth. However, these parties may or may not have an interest in the family business. A spouse may prefer to be involved in volunteer work. Children may have entrepreneurial aspirations of their own. Regardless, they still contribute to the proliferation of the wealth; the spouse through establishing or supporting the family's philanthropic legacy and the children by making new contribution to the family wealth as a whole and to their own progeny, in particular.   This brings us to the issue of who owns the wealth-will the real client please stand up? Often, advisors assume the person they are speaking with initially about the relationship is the client. But that person could be a spokesperson for the family or there could be multiple clients (owners of the wealth) instead of just one. The human elements either currently known or yet to be discovered have direct bearing on, firstly, the success of the advisor/client relationship and, two, on the proper treatment of the investable assets. Neglecting to discover the human elements and influences at work can prevent a valuable client relationship from simply getting off the ground, much less flourishing. Asking diagnostic questions as part of a wealth optimization program that considers all forms of a client's capital can start an advisor off on the right path.   Lisa Gray is president/CEO of graymatter STRATEGIES LLC, a consulting firm based in Memphis, TN whose purpose is to help advisors raise the level of their relationships with their clients. She has 18 years' experience in wealth management and is the author of "The New Family Office: Innovative Strategies for Consulting to the Affluent," http://www.euromoneybooks.com/default.asp?page=4&productID=3178    **** Since our inception we have helped over 400 financial consultants make the move to independence. "I cannot express to you the joy and the increase in quality of life that I have found since leaving the wirehouse world." Shane Merritt, Branch Manager Merritt Capital Management Here Are A Few of the Benefits of "Going Independent": Payouts on all your business, including fee based accounts of 90% plus. The opportunity to build substantial equity in your business and sell it at an attractive multiple when you desire. The opportunity for you, not someone at the home office, to control your bottom line and the profitability of your practice. The opportunity to build related businesses such as insurance, qualified plans, or trust companies, and keep those revenues. The opportunity to eliminate your clients' perceptions of conflicts of interest with research departments and corporate finance groups - TRUE OBJECTIVITY. The opportunity to charge and keep substantial fee income for planning, analysis and other services to your clients. The availability of technology that is as good or better than anything you have now. The list goes on... This Month's Registered Representative Opportunity: This broker-dealer is a full-service, national network of investment professionals dedicated to serving the needs of sophisticated investors. Their offices are around the corner or down the street. 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Account Maintenance and Clearance Accounts are carried by National Financial Services LLC, a Fidelity Investments company, Member NYSE/SIPC. Transaction clearing is provided on the New York and all major exchanges, as well as on NASDAQ for the full array of investment products. A Variety of Opportunities Reps are licensed to offer stocks, bonds, T-bills, options, mutual funds, insurance and commodities to suit each Client's investment portfolio. They maintain relationships with more than 600 mutual fund families. They also have carefully selected a variety of direct-participation and insurance-based investments. Variety and independent products are their hallmark, choice and selection is their job. State-of-the-Art Electronic Processing Each Rep is equipped with state-of-the-art electronic communications and processing systems which provide timely and reliable data for concise analysis and decision making. 24 hour access to information helps keep both reps and clients informed. Seasoned Management This BD is led by management thoroughly experienced in this business. The President, has managed securities operations, trading, marketing, management, and administration over a career that began in the 1960's. As a former partner in the largest independent national brokerage firm, he gained insights that now benefit you and your clients.   If you know someone who might be interested in the above opportunity or who might be ready to go Independent, please have them contact Jason Burke directly at 727-725-8876.

Here's some additional information from Turning Point, Inc...

www.BrokerBestPractices.com
www.BankBrokerBestPractices.com
www.IndependentRepBestPractices.com (*Sept 2005 REPORT AVAILABLE!)
www.FABestPractices.com (Financial Advisors)
www.InsuranceAgentBestPractices.com

By clicking on any of these links, you will be taken to a webpage where you can Preview these reports, take a short survey, and then print the entire report when you're done. It's that easy.

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