Question by Lee: What should a Certified Financial Planner do, other than working for a big wirehouse? These are hard times. ?
For years I have been fair and honest with my clients and kept a clean book. The current financial environment and scandals make it very hard for me to continue my business. What else should I do as a Certified Financial Planner job wise. Your sincere suggestions are appreciated.

Best answer:

Answer by ItsMe
Many advisors books, whether CFA, CFP, CPA, or just a registered rep have been hit hard 40/50%. As an advisor my business continues to flourish as I have adjusted my business models into more conservative investments. Many banks are now making the case against FEE based vs fixed accounts..ie. fixed annuities, variable annuities (with principal protection), brokered cd, corps, etc.. All these products have some guarantees which typically managed money(equity based) cannot provide…although i am an equities person which also does managed money, i have looked into things like Nationwides VA, which also pay trails.. which if the account is less than your original investment on the 5th year they will pay you back a lump sum check for the difference..and they lock in the anniversary value on that day as well..so if 100k is 150k on the 5th they re-insure at 150k.. 2% m&e but people are willing to pay for security, now Nationwide recently changed but there are other VAs that do this..managed money cannot provide you this safety..so i have added this to my managed money approach.. i have also increased sales of Brokered CDs, Split tickets strategies(self insuring your investment if you have 10 years), sales in life insurance and LTC… A lot more investment grade bonds..More security is better… diversification in these times are just not enough.. there are too many variables involved that were not part of the equation 10 years ago.. bottomline people need reassurance and security, so try to work within this realm while still meeting clients financial needs…

depending on brokered cds.. you still get compensated on these items. its better that they stay with you in a cd than move the money to a their local bank and trying to get those assets baack when the market turns around…retain what your clients..people are not being rational at the moment so if they want out of the market they want out..give them what they want but give it to them with you..

dont be afraid to look at things you didn’t look at before..at the very least look at what you competitors are doing whether banks, brokers, wirehouses, etc..

Its worked for me..I have recieved a lot of new money from many major wirehouses…

you may not agree with the strategies or investments but clients dont complain and my business has increased…

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