[ Inside: The Trends Issue — Are you ready for tomorrow’s client? ]
Volume 10 • Issue 4 • April 2009
A Summit Business Media Publication
www.SeniorMarketAdvisor.com
Calm
client
fears
Paul
Strebel
puts the recession
in perspective —
• Communicate
clearly
• Convey
confidence
• Paint the
long-term
picture
• Mine golden
opportunities to
strengthen client
relationships
By Joseph Finora | Photography by Jon Reis Photo & Design
Head
of the
Class
To succeed in challenging times,
advisors must make an educational
investment in their futures.
Paul Strebel, a longtime
financial advisor and Cornell University
lecturer, reveals how his experiences
in higher learning and financial planning
complement one another, helping him
offer lessons to both students and
clients on money matters.
>>
Senior Market Advisor • www.SeniorMarketAdvisor.com • April 2009
“Now is the time
when reputations are
going to be made in
this business.”
Paul Strebel
April 2009 • www.SeniorMarketAdvisor.com • Senior Market Advisor 37
Head of the Class
Paul Strebel has
the best of both worlds.
A certified financial planner, certified public accountant, certified business coach and lecturer
at Cornell University, he runs the Strebel Planning
Group (www.strebelcpa.com), also located in
Ithaca, N.Y. He shares the business with wife
Leslie, an advisor, long term care specialist and
certified business development coach, and his
brother Chris Strebel, CPA, CFS, who runs the
office’s tax-planning department. The Strebel
family’s commitment to the industry will continue
as Paul and Leslie’s daughter Debra will graduate
from the CFP program at nearby Alfred State
University this year, joining the firm as a planner.
While it might sound like a family affair, the
Strebels are supported by a staff of 10, handling
client service, administration, compliance, technology and marketing. In business as independent
advisors since 1984, Strebel Planning Group
regularly advocates giving back to the community
it serves, and regularly encourages others to do
the same.
Strebel is a firm believer in utilizing the power
of research and education, and he not only teaches
financial planning and accounting principles but also
continues studying them. In so doing, Strebel can
boil down macroeconomic theory to show clients
how economic issues impact their financial future.
Senior Market Advisor recently spoke with him about
his business, his outlook and his advice for success
in these tough times.
Senior Market Advisor • www.SeniorMarketAdvisor.com • April 2009
SMA: You have a unique perspective
within this industry. What is it like to
change hats from advisor to educator
and vice versa?
Paul Strebel: It’s two very different worlds.
The school can be a sanctuary—case studies are
theoretical and you can look at the economy and
markets through students’ eyes. It’s satisfying and
>>
Head of the Class
uplifting to influence students and hear
how a class has changed their future. It’s
very different being employed at a large
institution versus managing a 12-person
firm where we have control and can
make things happen quickly.
SMA: Considering your experience as an educator and
your ability to look at the
“big picture,” in what ways
does that impact or shape
your practice? And shape
and impact the way you relate to clients and prospects?
PS: While I have a deep understanding of those clients who work in higher
education, it’s vital that all advisors
transmit confidence and competence
in presenting information in a clear,
understandable way. As for the economy, it’s no secret that consumers are
fearful. I’ve found that it helps being
able to give them a long-term picture
of markets and what has happened
historically. We certainly use this in our
communications.
SMA: Talking about the
economy, what’s different
about this downturn?
PS: One of the consistent challenges
is that we can best identify what’s gone
on in the markets and economy, only
after the fact. This downturn affected
all asset classes simultaneously so there
were precious few places to run and
hide. The speed with which the market
dropped also made this unusual. The
takeaway is that this is a golden
opportunity to start new client relationships.
SMA: What can advisors
do to take advantage of this
situation?
PS: Many clients are currently not
happy with the performance of their
products. A lack of communication
from their existing advisor and a
distrust of the financial institutions
that have been making headlines …
that’s what’s pushing them away. We
have an opportunity to stand out by
reaching out and addressing their fears,
not hiding from them.
SMA: Are there strategies or
techniques you’re
currently employing to
communicate with clients
and prospects?
PS: We are not shy about promoting
our firm. We use an e-mail newsletter,
snail mail and monthly workshops for
clients, their friends and families. We
write a local newspaper article every
month which lends great credibility.
Our sales and marketing manager
regularly feeds announcements to the
media. When asked for an interview, we
do our best to prepare for what’s often
a tight deadline. We post articles to our
Web site and send links to our mailing
list.
SMA: What are you doing
about obtaining referrals?
PS: This is a great time to ask for
referrals. Over the past six months the
markets have been a steady subject of
conversation. Our clients know who,
among their friends and coworkers, are
unhappy, worried and fearful, and they
are much more likely to give a referral
out of a desire to help their contacts
and us. As advisors, we obviously don’t
have any control over the markets, but
“We’re
marketing more
because
we see this
as a huge
opportunity
to grow
business.”
we do control how we respond in tough
times. If we have risen to the occasion,
we’ll earn referrals.
SMA: What advice do you
give other advisors during
this time?
PS: For many, this will prove to be one
of the greatest marketing opportunities
of all time. We’re definitely navigating
within a climate of fear, but it’s a
mistake for advisors not to stay in contact with clients. Clients want to know
how they’re protected and what control
they have. While the wirehouse rep is
focusing on growing assets and chasing prospects, the independent advisor
should be nurturing clients, obtaining
referrals and growing his brand within
his community, because most business
is local. Now is the time when reputations are going to be made in this
business.
SMA: What adjustments
have you made at your
practice due to the current
economic troubles?
PS: We are communicating more frequently with clients and prospects and
hosting monthly workshops about the
economy and future strategies. We’ve
become more tactical in our investment recommendations. And we’re
marketing more because we see this as
a huge opportunity to grow business.
We’re also offering more products
with downside protection, such as
variable annuities with guaranteedincome benefits and more defensive
investment strategies. We read more
and work with other advisors via
affinity groups to stay informed and
share ideas. And we’ve resigned
ourselves to earning less and working
more, at least temporarily.
SMA: What are some of the
money-saving, creative or
entrepreneurial ideas your
practice is embracing?
PS: We moved our workshops to our
offices and toned down client dinners
and appreciation events. This saves
money and helps avoid appearing
like this downturn is not affecting us,
which would be a lie.
With a little creativity, one can find
great value and fun for clients. We
“As advisors,
we obviously don’t
have any control
over the markets,
but we do control
how we respond
in tough times.”
*
Calm client fears
Editor’s Note: The truth is, consumers are fearful. With a tumultuous market
playing havoc with consumers’ retirement plans coupled with the gut punch
of some financial institutions and individuals mishandling investors’ money,
it’s easy to see why clients are scared and facing trust issues. With that in
mind, it’s more important than ever to calm client fears. Below are rules Strebel
provides to do just that.
n Employ the Three C’s. Be confident. Be competent. Be concise.
Clients have been through the ringer, and they deserve to have their advisor
provide them strong leadership in a clear, understandable way.
n Utilize the power of research and education. Clients
are looking for knowledge and a better understanding of financial markets.
Advisors need to be able to put on their “teaching hats” and provide a bigpicture view and show clients how that relates to their specific retirement plan.
Strebel says: “I’ve found that it helps being able to give (clients) a long-term
picture of markets and what has happened historically.”
n Don’t sugarcoat the reality of what is happening.
More than ever, clients want someone they can trust. They want an advisor they
can ask the hard questions of and expect to get a dose of reality, even when the
truth might be painful to hear. At the end of the day, your bond with your client
will be that much more unbreakable.
recently purchased a block of 300
tickets for a Chinese acrobatic troupe.
We got a great group rate and private
section for a party. We want our clients
to go back to their offices on Monday
and tell everyone about the fun they
had on our nickel.
We’ve always had a culture of
entrepreneurship, and we continue to
engage our employees in finding new
ways to do business to help us be more
efficient and effective. For many years
we’ve incorporated life-planning tools
in our process. It’s more important than
ever to discuss clients’ lives in broader
terms, helping them remain resilient in
stressful times.
944 Dryden Road
Ithaca, New York 14850
607-275-1275 1-800-597-1181
results@strebelcpa.com
www.strebelcpa.com
April 2009 • www.SeniorMarketAdvisor.com • Senior Market Advisor