Implementing the Wealth Management Index: Tools to Build Your Practice and Measure Client Success

Praise for Implementing the Wealth Management Index "Implementing the Wealth Management Index seems to me to be a great way to tame the challenge of communicating and managing dozens or hundreds of financial issues in a client′s life.?As a bonus, you get to look over the shoulder of one of the profession′s leading thinkers as he evaluates his firm′s internal management processes and thinks about how to approach virtually every aspect of the financial planning service." —Bob Veres, Editor, Inside Information "Ross Levin has always been a thought leader in the financial planning business, and has always been incredibly generous with his insight and wisdom to help other planners and advisors who are trying to grow their businesses. The first edition of The Wealth Management Index was a breakthrough piece of thinking on how to deliver value to individuals and families. This version is a great enhancement to the original text because it incorporates even more practical ideas in an even more complex world. I urge all advisors, whether they′re with independent or employee–owned firms, to get this book, take many notes, and implement the great ideas that Ross is offering up." —Mark Tibergien, CEO, Pershing Advisor Solutions, a BNY Mellon company "A towering figure in the financial planning movement, Ross Levin understands that investors′ goals go far beyond financial success. Implementing the Wealth Management Index updates his seminal work with even more actionable advice on how individuals can make smart money management their means to a more rewarding life." —Don Phillips, Managing Director, Morningstar "With consumer trust in the financial advisor community still on the mend, and a legislative and regulatory environment focused on accountability and transparency, a guide that can bend advisors′ businesses in new, client–centered directions is perhaps more timely and relevant today than ever. Implementing the Wealth Management Index is a compelling and practical model that espouses laser–like focus on client objectives and solutions using a transparent, balanced approach." —Sean R. Walters, CAE, CEO/Executive Director, IMCA, Investment ManagementConsultants Association "Ross Levin gives us not merely a revision, but a new vision of how to build a successful practice and help your clients progress toward meaningful goals." —Marv Tuttle, CAE, Executive Director/CEO, Financial Planning Association "Ross delivers in spades on his promise of turning concept into practice. I loved the originalissue of The Wealth Management Index and this update is even better. This is a must on the shelfof all practitioners; however, don′t just buy the book; read and implement its ideas and watch your business grow." —Harold Evensky, President, Evensky & Katz; coauthor of The NewWealth Management "Ross hopes this book is a blessing to the planners that read it. I say it′s a true blessing to theirclients. This book makes us all better." —Marty Kurtz,

Introduction xi CHAPTER 1 Turning a Concept into a Practice 01 The Format 02 The Wealth Management Index Overview 03 The Wealth Management Index 04 Conclusion 11 CHAPTER 2 Building and Operating a Practice 13 What Do You Want to Be When You Grow Up? 13 Partners 21 Broader Ownership 23 Conclusion 32 CHAPTER 3 Growing Your Business 33 Quantitative Prospect Metrics 33 Behavioral Types of Prospects 35 The Prospect Meeting 39 Questions 42 Other Questions 46 Next Steps 47 Conclusion 49 CHAPTER 4 Developing Staff 51 The Client Team 51 Leadership Pipeline 52 Conclusion 52 CHAPTER 5 Training Staff in Using the Wealth Management Index 65 The New Hire Process 65 Conclusion 83 CHAPTER 6 The Work Plan 85 Pre–meeting 85 Post–meeting 87 Agenda 92 Conclusion 92 CHAPTER 7 Objective Setting 95 Asset Protection 95 Disability and Income Protection 98 Debt Management 103 Investment Planning 105 Estate Planning 107 Conclusion 112 CHAPTER 8 Scoring the Wealth Management Index 113 Spreadsheet 114 CHAPTER 9 Asset Protection (Preservation) 117 Components 119 Have You Articulated a Life Insurance Philosophy? 119 What Are Your Concerns Regarding Risks of Large Losses from 128 Medical, Long– Term Care, Property/Casualty, and Personal or Professional Liability Issues? Have You Defi ned and Protected Your Business Interests? 138 Conclusion 142 CHAPTER 10 Disability and Income Protection (Protection) 145 What Are the Income and Lifestyle Needs and Wants of Your Family 147 Currently and Prospectively? Have You Evaluated All Current Sources of Income and Potential 159 Changes to These Sources? Are You Fully Utilizing All Benefits Available to You? 168 Conclusion 189 CHAPTER 11 Debt Management 191 Have You Established Your Philosophy Regarding 192 Using Savings or Credit? Is Your Type of Debt Appropriate Given Your Wealth–Management 196 Objectives? Conclusion 201 CHAPTER 12 Investment Planning (Accumulation) 203 Have You Developed an Investment Philosophy? 205 Have You Determined the Mechanics for Managing Your Portfolio 222 and the Evaluation of What Success Looks Like? Conclusion 228 CHAPTER 13 Estate Planning (Distribution) 231 Have You a Philosophy on Wealth Transfer? 232 Have You Articulated Your Charitable Philosophy or Mission Statement? 244 Have You Planned For Incapacitation, Elder Care Issues, 248 and Final Planning Needs? Conclusion 251 Epilogue 253 About the Author 255 Index 257

Ross Levin, CFP®, is the Founding Principal and President of Accredited Investors Inc., and a nationally recognized expert in financial planning. He was named one of the five most influential people in financial planning by Financial Planning magazine and as one of the twenty–five most influential individuals in and around the advisory profession by Investment Advisor magazine. A much sought after speaker on financial matters, Levin has appeared in numerous publications, including the Wall Street Journal, Bloomberg Businessweek, Fortune, the New York Times, Newsweek, Barron′s, and Money magazine, as well as on television and radio shows such as NBC Nightly News, The Oprah Winfrey Show, and American Public Media′s Marketplace Money. Levin was the first recipient of the Financial Planning Association′s Heart of Financial Planning Award.