Deena Katz on Practice Management: For Financial Advisers, Planners, and Wealth Managers

327 Pages·1999·3.96 MB·English

by  Deena B. Katz

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2 Praise for
3 Deena Katz on Practice Management
4 for Financial Advisers, Planners, and Wealth Managers
5 by Deena B. Katz
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7 “Physician heal thyself is a long-standing adage in the medical
8 community, but the same spirit applies to all professions. How
9 many fine planners run poor businesses simply because they
10 don’t apply the same energies to their practice as they do to
11 their clients. Thankfully, Deena Katz has made yet another valu-
12 able contribution to the profession. This book outlines step-by-
13 step how you can make your practice an efficient, profitable, and
14 highly professional endeavor.”
don phillips
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16 Managing Director
17 Morningstar, Inc.
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19 “An indispensable resource for any financial planner who wants
20 good ideas and insights on how to make a practice more suc-
21 cessful—and it also gives some real perspective on what success is.”
22 janet g. mccallen, cae
23 Executive Director
24 Financial Planning Association
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26 “I am very impressed with Deena’s writing style and her ability to
27 share her understanding of this business in such an entertaining
28 and honest way. This book is a no-nonsense guide for anyone con-
29 templating entering this business—or for that matter, anyone
30 already in business who wants to be more efficient! As I teach
31 financial planning candidates, Deena’s book absolutely will be
32 required reading. What a contribution Deena has made to this
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33 profession.” RE
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34 patricia p. houlihan, cfp ERG
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35 Chair, CFP Board of Standards OO
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36 Chair, International CFP Council E:
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“Every financial planner in practice, anywhere in the world, 2
should read this book. The chapter on the ‘Concierge Service’ is 3
worth many times the price on its own.” 4
david s. norton, cfp
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Former president, Institute of Financial Planning 6
United Kingdom 7
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“This volume belongs on every financial planner’s bookshelf. The 9
book is filled with ideas, techniques and resources of benefit to 10
the experienced planner and novice alike…. The finest practice 11
management volume available to financial planners today.” 12
Journal of Financial Planning 13
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“The book is like a hard-copy chat room for the exchange of 15
valuable ideas on how to make your business a success. The 16
checklists, agenda outlines, and forms make it an indispensable 17
reference work for any financial advisor. Whether you are an 18
investment consultant, financial planner, or wealth manager, 19
there is something for you.” 20
The Journal of Investment Consulting 21
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“Deena Katz covers all the bases—from articulating the company’s 23
values to selecting the right software. Reading her book is like sit- 24
ting down with an old friend for a cup of coffee. Her style is warm 25
and her dedication to outstanding client service makes her advice 26
relevant to any service business.” 27
Morningstar.com 28
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“Deena has done it again! Another must-have for the financial 31
adviser/wealth manager’s library. Valuable for improving both 32
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RE the thought process and the practice of wealth management.” 33
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ERG david h. diesslin, mba, cfp 34
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OO Founder 35
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E: Diesslin & Associates, Inc. 36
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D E E N A K A T Z 11
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P R A C T I C E
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MANAGEMENT 15
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1 Also available from
2 Bloomberg Press
3
4 The Financial Planner’s Guide to Moving Your Practice Online:
5 Creating Your Internet Presence and Growing Your Business
6 by Douglas H. Durrie
7
8 Deena Katz’s Tools and Templates for Your Practice:
9 for Financial Advisers, Planners, and Wealth Managers
10 by Deena B. Katz
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12 Best Practices for Financial Advisors
13 by Mary Rowland
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15 Protecting Your Practice
16 by Katherine Vessenes, in cooperation with the
17 International Association for Financial Planning
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A complete list of our titles is available at
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www.bloomberg.com/books
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24 Attention Corporations
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26 BLOOMBERGPRESSBOOKSare available at quantity discounts with bulk pur-
27 chase for sales promotional use and for corporate education or other busi-
28 ness uses. Special editions or book excerpts can also be created. For infor-
29 mation, please call 609-279-4670 or write to: Special Sales Dept.,
30 Bloomberg Press, P.O. Box 888, Princeton, NJ08542.
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BLOOMBERG® WEALTH MANAGERmagazine is the premiere S
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professional information resource for independent financial planners and G
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investment advisers who are serving clients of high net worth. M
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See wealth.bloomberg.com or call 1-800-681-7727. BL
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B L O O M B E R G P R O F E S S I O N A L L I B R A R Y
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D E E N A B . K A T Z 6
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D E E N A K A T Z 10
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P R A C T I C E
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MANAGEMENT 14
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FOR FINANCIAL ADVISERS, 20
PLANNERS, AND WEALTH MANAGERS 21
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With a Foreword by Ross Levin 28
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B L O O M B E R G P R E S S
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P R I N C E T O N 37
1 © 1999 by Deena B. Katz. All rights reserved. Protected under the Berne Convention.
2 Printed in the United States of America. No part of this book may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any means, electronic,
3
mechanical, photocopying, recording, or otherwise, without the prior written per-
4 mission of the publisher except in the case of brief quotations embodied in critical
5 articles and reviews. For information, please write: Permissions Department,
Bloomberg Press, 100 Business Park Drive, P.O. Box 888, Princeton, NJ 08542-0888
6
U.S.A.
7
8 Books are available for bulk purchases at special discounts. Special editions or book
excerpts can also be created to specifications. For information, please write: Special
9
Markets Department, Bloomberg Press.
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11 BLOOMBERG, BLOOMBERG NEWS, BLOOMBERG FINANCIAL MARKETS,
OPEN BLOOMBERG, BLOOMBERG PERSONAL FINANCE, THE BLOOMBERG
12
FORUM, COMPANY CONNECTION,COMPANY CONNEX, BLOOMBERG PRESS,
13 BLOOMBERG PROFESSIONAL LIBRARY, BLOOMBERG PERSONAL BOOK-
14 SHELF, and BLOOMBERG SMALL BUSINESS are trademarks and service marks of
Bloomberg L.P. All rights reserved.
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16 This publication contains the author’s opinions and is designed to provide accurate
17 and authoritative information. It is sold with the understanding that the author, pub-
lisher, and Bloomberg L.P. are not engaged in rendering legal, accounting, invest-
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ment-planning, or other professional advice. The reader should seek the services of
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a qualified professional for such advice; the author, publisher, and Bloomberg L.P.
20 cannot be held responsible for any loss incurred as a result of specific investments or
planning decisions made by the reader.
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First edition published 1999
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Katz, Deena B., 1950–
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Deena Katz on practice management for financial advisers, planners, and
26 wealth managers / Deena B. Katz ; foreword by Ross Levin.
27 p. cm. -- (Bloomberg professional library)
Includes bibliographical references.
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ISBN 1-57660-070-X
29 1. Business enterprises -- Finance--Handbooks, manuals, etc.
30 2. Financial planners--Handbooks, manuals, etc. I. Title.
II. Title: Practice management for financial advisers, planners, and wealth
31
managers. III. Series.
32 HG4011.K38 1999
33 658.15--dc21 99-23252
CIP
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Acquired and edited by Jared Kieling
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To Harold 18
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(You know why)
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2 C O N T E N TS
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10 Foreword xiii
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by Ross Levin, CFP
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13 Introduction 1
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15 SECTION ONE: THE BUSINESS 18
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C H A P T E R 1
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18 Determining Your Core Values, Mission, and Vision 21
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20 C H A P T E R 2
21 Designing the Business 41
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23 C H A P T E R 3
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Contingency and Succession 57
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27 SECTION TWO: THE PEOPLE 68
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C H A P T E R 4
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Adding a Partner for Fun and Profit 71
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C H A P T E R 5
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33 People Make It Happen 89
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C H A P T E R 6
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36 Staff Structure and Retreats 111
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SECTION THREE: THE ENVIRONMENT 130 1
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C H A P T E R 7 3
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Hardware Makes It Happen Quickly 133
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C H A P T E R 8
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Software Makes It Happen Profitably 149 8
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C H A P T E R 9
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Systems Make It Happen Efficiently 169 11
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SECTION FOUR: THE GROWING 194
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C H A P T E R 1 0
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Killing the Sacred Cows 197
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C H A P T E R 1 1
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Positioning and Public Relations 209 20
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C H A P T E R 1 2 22
Transitioning Your Practice 221 23
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SECTION FIVE: THE CLIENT 232 26
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C H A P T E R 1 3
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Hiring, Firing, and Refusing Clients 235 29
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C H A P T E R 1 4 31
Retaining Desirable Clients 245 32
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C H A P T E R 1 5 34
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Gotta-Have-It Resources 271
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Index 294 37