Do what is right...and other thoughts

Just returned from my broker-dealer's annual conference. As you can imagine, it is easy to come back from a conference loaded down with new ideas and a strong desire to turn everything upside down. My approach after 34 years in the industry is to try to pick out a few good ideas and let them stew in my brain.

Three ideas stuck with me from this year's conference. The first is, "If you do it right, you will benefit the bottom line". This gem came from Captain Sully Sullenberger of "Miracle on the Hudson" fame. He was drawing from his experience of having had to crash land his airplane with 155 crew and passengers onboard into the Hudson River after the plane's engines were struck by a flock of Canadian geese.

This idea stuck with me as this is very much how I try to manage my 401k practice. Said another way, "Do what is right always by your customer or prospective customer and that will benefit your bottom line". That sounds a lot like the much maligned Fiduciary Rule but to me, it is the right way to do business. The Fiduciary Rule might have caught some by surprise but I have always felt it is common sense. Do right by your client always.

Doing right always by your customer will benefit your bottom line. Offer the right solution to the client, explain the value, and the "sale" will make itself. And yes, a "sale" benefits the bottom line. Beyond that, you earn/ deepen the trust with your client. Try to push a product that is not right for your client and you might still make the sale/ benefit your bottom line. But eventually, I feel, your client will see that their trust has been abused and you will lose a cllent/ harm your bottom line/ your reputation.

But what of the prospective client? Same idea. Do right always by your prospective client even if it means redirecting them to a channel that is a better fit. You benefit the bottom line by avoiding a client that is not a good fit/ creating a problematic relationship.

In the case I had this morning, a 401k employee was asking for long-term financial planning assistance on many fronts. While I am versed in financial planning, I know there are advisors who are true artists in this arena. I was more than happy to suggest the employee talk with a fellow advisor. She will more than likely get a better experience/ her needs met and I will not be worried about feeling like a fish out of water. That benefits my bottom line with peace of mind.

I found myself thinking back to Junior Advisor James' days in Scouts and the singing of "Scout Vespers" at the nightly campfire.

"Have I done my daily task? Have I kept my honor bright? Can I guiltless sleep tonight?"

Captain Sullenberger also posited the question of when you are the end of your life, will you be counting your riches? Actually, you might find that you are rich if you can answer the question of, "Did I make a difference?". This concept is not new but it resonated with me.

There are any number of studies out there showing that Americans are hungry for impartial financial education and advice. In my own small way in my 401k practice, I try to make a difference with everyone I talk to. It could be as simple as explaining the Roth concept, demonstrating a budget, or simplifying the mountains of Morningstar data. Is the person I spoke with better off having talked with me? This needs to be a resounding "Yes" with each and every interaction and each and every day. And yes, by making a difference, you will benefit your bottom line.

The final conference idea for this article came from Sales Director Mark Altman of MindSetGo. Among his many actionable ideas, he offered this simple directive. "Bring out the best for people". At first I thought he had said, "Bring out the best in people" which again benefits your bottom line and is the right thing to do.

No, he was saying "bring out the best for people". As I understood, we should bring out the best behaviors/ advice/ education for clients and we should model that as well. In this case, I found myself thinking about Coach Jim Harbaugh of the NFL's LA Chargers. One of the reasons for his success as a football coach is that he has been a successful football player at the collegiate and professional levels. As a coach, his players listen to him because he has built trust based on having done what he is asking of them.

Coach Harbaugh is bringing out the best for his players to follow and he models that behavior. Has it benefited his bottom line? I would say so. You can measure the benefit in championship rings, monetary compensation, etc. but the answer is a "Yes", I would offer. This is not to say that he is not without his faults. Then again, one of the best practices you can model is how to face and recover from adversity.