Week 10 Flashcards
Competition for the “Trusted Advisor” seat at the table is stiff. All of these are factors, EXCEPT:
A) Robo Advisors, Smart Machines, and Artificial Intelligence
B) The internet
C) Enhanced new account business
D) Eroding margins and fee compression
C) Enhanced new account business
This is the one that is not a factor, each of the others is.
What is meant in this assignment by “The Wheel of Integrated Services?”
A) The hub, spoke, and rim metaphor helps us see that we are working with an organized body of knowledge that includes and organizes our respective disciplines, with a hub where each comes together, and a rim where the rubber meets the road.
B) The Wheel represents the client sales and planning cycle, from client acquisition, to discover/agreement, to strategies “below the line,” to implementation, to service, to a new cycle of planning.
C) The Wheel of Integrated Services is like the condiment try in a restaurant that spins so that each person can get the item or items he or she needs.
D) The Wheel of Financial Services represents a vision widely shared and implemented by professional advisors today.
A) The hub, spoke, and rim metaphor helps us see that we are working with an organized body of knowledge that includes and organizes our respective disciplines, with a hub where each comes together, and a rim where the rubber meets the road.
The Wheel is a highly ambitious and aspirational way of organizing a client planning process. It integrates all elements (law, accounting, family governance, wealth management, tax planning, insurance, philanthropy, and more) into a coherent whole and emphasizes action, where the rubber meets the road. Few advisors and firms are there yet.
Using good judgement, your native intelligence, and all you have learned, what benefit or benefits do you see in the worksheets in Mark Webber’s book?
I. They take a high-level process taught in CAP and make it practical for clients and advisors.
II. They save the advisor time, while giving the client “time to think.”
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
The CAP process grows out of the work done by authors like those in Wealth of Wisdom who work in family offices, multi-family offices, private banks, or best-of-breed teams of independents with clients from Ultra-High Net Worth on up to billionaires to, well, centa-billionaires who may not want to even be on the same island with everyday billionaires.
You don’t have that many billionaires as clients. For the CAP process to be practical for most of us, we have to shorten it without shortcutting it. Yes, we should have clients start “above the line” with time to think. Yes, we then have to translate their qualitative concerns into quantitative strategies. And, yes, the hardest part and the most time-consuming is “above the line” because clients face dilemmas they cannot resolve. They cannot bring their own thoughts about life, love and legacy to rest. So, the strategy of Mark’s book the right strategy, is to put the work “above the line,” the work of reflection and discernment and the making of hard choice among warring goals into the client’s court. The book gets the client thinking. That pondering could take months! Then, client and spouse may have some battles over it. But when the client or couple return, what they have in hand are neatly spelled-out worksheets. The advisor can then pivot below the line and start doing billable work, or work that leads to product sales, gifts, or assets under management.
Scott Fithian believed it important to know where you “sit” in the mind of the client. All of these reflect that position, EXCEPT:
A) Clients and donors have preset boxes in their minds and are mentally trying to put you into one of these
B) To determine whether the prospect knows what Scott does
C) To discover and reframe how the client sees Scott
D) To tell Scott what products he will be able to sell this client
D) To tell Scott what products he will be able to sell this client
By clarifying his role with the client beyond the client’s initial “box,” Scott was able to deliver better results.
The “Intriguing One-Liner” serves the purpose of
I. Helping to get a deeper conversation and engagement with the client or donor
II. Allowing the advisor to focus on the products he is trying to sell.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) I only
Mutual engagement and interest can occur only when true curiosity is sparked
Todd Fithian believes that you should not focus on comparing yourself to other professionals but instead should
A) Focus on the differences you make in client’s lives
B) Focus on the quality of your products
C) Focus on your designations, which show your commitment to professionalism
D) Focus on the power of your tax reduction strategies
A) Focus on the differences you make in client’s lives
All the other answers focus on the advisor, not on the client/donor
Which organization or organizations below will typically serve at most a handful of families?
I. Family Office
II. Private Bank
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) I only
The family office may serve only one family (a single family office) or several ( a multi-family office). A private bank, often part of a larger bank, will serve many families.
Which term or terms is another way of saying “above the line planning?”
I. Qualitative Planning
II. Quantitative Planning
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) I only
“Qualitative”, “Humane,” “Values-based,” or “planning for the why” are ways of saying the same thing as “above the line planning”
“Quantitative planning,” “Strategic planning,” or “Planning for the how” focuses below the line.
According to Simon Sinek, at the center of the Golden Circle is
A) Why
B) How
C) What
D) When
A) Why
The “why” is the heart of it all
All of these is one of the Four Decisions defined by Todd Fithian and the Legacy Companies, EXCEPT:
A) Agree to implement
B) Agree to engage
C) Agree to meet
D) Agree to buy
D) Agree to buy
Buying follows naturally from a good process.
According to Hess and Ludwig, all of these is going to be key human skill in the future, EXCEPT
A) Memorization of IRS Code sections
B) Critical Thinking
C) Creativity
D) Emotional engagement with other people
A) Memorization of IRS Code sections
This is not as important as the others. Machines can learn basic facts. The higher order skills set us apart.
Your New Me story should begin with
A) Why clients buy from me
B) Why clients hire me
C) The “old me”
D) Your transforming event
C) The “old me”
The “old” me
A transforming event
The “new” me
The New Me is what makes you special, explains what you do now, and shows clients or donors should relate to you.
The use an intriguing one liner to introduce yourself offers the benefits of
I. Preventing the client/prospect from putting you in a pre-determined box
II. Encouraging further conversation between you and the client/prospect
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
Don’t let the client put you in a box and say “ I already have one of those.” Get into a real conversation to explain who you are and what you do.
Above and Below the Line Planning refers to the separation of all of the below EXCEPT:
A) The Qualitative and Quantitative sides of planning
B) The Why and How of planning
C) The Sales and Consulting sides of planning
D) The People and the Tools & Techniques of Planning
C) The Sales and Consulting sides of planning
This one is not like the others. The others all say some version of the human why and a technical how.
