CITP answers - Certified Information Technology Professional (CITP) Updated: 2023

I’m going to let you into a little secret. Investment advisors are human. This is true regardless of whether they work for a big-name broker, an insurance agency, or are independent. Each and every one of them is human. And that’s a problem.

If you’ve read my columns, I’ve talked about a strange phenomenon among individual (meaning non-professional) investors. They seem to have a bias to get out of the market after it’s gone down and a penchant for getting into the market after it’s gone up. While they still, on average, make money, they don’t make near the money they would have if they had just left their investments in place.

Enter the professionals. You might call them financial planners, financial advisors, investment advisors, or some other such title (I’ll answer to just about anything). They do this for a living. You’d think they must be immune to the emotions brought on by a volatile—these days very volatile—market.

You’d think that, but you’d be wrong. Generally, they do better than most (or they likely wouldn’t survive in this business), but they are certainly not immune. You see, it’s that human thing. Humans are emotional creatures. It’s wired into our brains.

Numerous studies (and my anecdotal observations) show several trends. As markets peak, advisors tend to have a greater portion of client assets in stocks than normal. That’s fine on the way up, but a peak means that the next series of movements goes the other way. To see profits disappear on the downhill side can be a bit disheartening. Then when markets eventually hit their lows, cash and bond holdings in professionally managed accounts seem to grow leaving less money in stocks just as they start the climb of a new bull market.

Now, there may be some extenuating circumstances. Advisors have to follow their clients’ orders, and some clients when markets plummet tell their advisors to sell all of the stocks in their portfolios. And it is true that if they did nothing during a market decline, the percentage of stocks would have dropped because their value dropped.

But even taking that into consideration and given my own observations of what many investment professionals do, there is a tendency toward amateurish behavior on their part; those advisors move to a safer configuration after the markets had gone down and more aggressive positions after markets soar. Panic and euphoria aren’t reserved for amateurs.

This isn’t to imply that all investment advisors do a poor job of investing; and it doesn’t mean that all or even a majority of them are not doing a professional job. But it does show that they are human after all, subject to the foibles that plague us all.

May God protect the innocents and may we help in a meaningful way.

Gary Silverman, CFP® is the founder of Personal Money Planning, LLC, a Wichita Falls retirement planning and investment management firm and author of Real World Investing.

This article originally appeared on Wichita Falls Times Record News: Silverman: The secret about financial professionals

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• A financial advisor can help you plan for retirement, build an investment portfolio, budget your money to reach your financial goals, and much more.
• When hiring an advisor or planner, make sure to consider their specialties and certifications.
• Also consider how they charge: a flat fee, hourly rate, retainer, percentage of assets, or commission.

Hiring a financial advisor or a financial planner can help you achieve your short- or long-term goals — like having a comfortable retirement, funding your child's college tuition, or buying a house. 

These professionals aren't one-size-fits-all, though, and finding the right one is critical to your success. Here's what you need to know about financial advisors and planners, and how to zero in on the best one for your goals and budget.

How to Choose a Financial Advisor

To choose the right financial advisor or planner, you first need to understand what you're trying to achieve. Are you looking to maximize your retirement funds? Do you want to make more from your investments? Is planning your estate and legacy top of mind?

Financial professionals typically have specialties, so you'll want to choose one that aligns closely with your goals. Common financial planning specialties include:

There are also advisors and planners who specialize in specific life stages, demographics, or even people with certain occupations. 

"When looking for a financial planner, it is important to understand exactly what you're looking for," says Jay Zigmont, a CFP® planner and founder of Childfree Wealth, which focuses on financial planning for adults who choose not to have children. "You will find planners who specialize in just about every group, job, and life stage, so find one that fits you."

Choosing a financial planner who's a fiduciary is also important. This means they must avoid conflicts of interest and always put your interests first.

"A planner that operates under the fiduciary standard is required by law to always keep your financial best interests ahead of theirs," says Jason Steeno, president of financial advisory firm CoreCap Investments in Southfield, Michigan. 

1. Search for financial advisor options in your area 

There are many ways to find a financial advisor or planner near you. Asking friends, family members, and colleagues is often a good place to start, as they can recommend local professionals they've had personal experience with. 

You can also use one of these online resources, all of which allow you to filter by geographic area:

• Financial Planning Association: FPA's tool lets you search for CFP® professionals in your area, and you can filter by specialty, compensation type, and certification. 
• National Association of Personal Financial Advisors: With NAPFA's search tool, you enter your ZIP code and can filter planners based on their distance from you. There's also a map you can use to view all your options in one place.
• Let's Make a Plan: This is the Certified Financial Planner Board of Standards' search tool. You can search by location, services offered, or both. All planners listed are CFP® professionals. 
• XY Planning Network: XY's tool lets you search for fee-only financial advisors (more on this below) in your area. You can look by location and filter results using various keywords and specialties.

Once you've shortlisted a few names, cross-check them on BrokerCheck.com and with the Securities and Exchange Commission (SEC). There, Steeno says, "You can see how long they've been in business or if they've had any disciplinary history."

2. Review a financial advisor's credentials

There isn't a single "financial planner" or "financial advisor" license or certification. As Steeno puts it, "Just about anyone can call themselves a financial planner."

To ensure you're choosing an experienced and knowledgeable professional, look for professional designations like CFP®, CFA, or CIMA. These are just a few credentials a financial advisor can seek, each indicating a different specialty or skill set.

Here's a look at some of the credentials you might see:

• CFP®: A CFP® is a CERTIFIED FINANCIAL PLANNER^TM. These professionals must have a bachelor's degree, three years minimum in full-time financial planning, and complete a board-certification program. CFP®s also must take 30 hours of continuing education every two years.
• CFA: CFA professionals must take a three-part exam focusing on investment tools, assets, wealth planning, and portfolio management to be certified.
• CIMA: Professionals with a CIMA designation are Certified Investment Management Analysts. CIMAs are required to have three years of experience in financial services and enroll in a CIMA education course at the Yale School of Management, The Wharton School at the University of Pennsylvania, the University of Chicago Booth School of Business, or the Investment Management Research Program in Australia.
• MRFC: An MRFC is a Master Registered Financial Consultant. These professionals need at least four years of full-time financial planning experience, have a bachelor's degree in accounting, economics, or finance, and complete 40 hours of continuing education every year. 
• ChFC: ChFCs are Chartered Financial Consultants. They must have at least three years of full-time business experience, complete 27 credit hours of courses, and receive 30 continuing education credits every two years.
• CRC: This one is a Certified Retirement Counselor. They must have two years of professional retirement planning experience, pass a specialized certification exam, and take 15 hours of continuing education courses annually. 

You can usually find a planner's credentials listed after their name — both in the online search resources under Step 1 and on their professional profile or LinkedIn account. 

3. Review fee structures 

There are many ways a financial advisor may charge you, so be sure you understand how they charge before working with them. Some services are charged based on the assets or investments the planner manages, while others charge flat fees or receive commissions. How they charge can influence how much you'll end up spending to work with a financial planner so it's always important to research this part beforehand.

Here's a look at some of the various fee structures financial planners use:

• Fee-only: Fee-only planners are paid for the services they provide. This might mean an hourly rate, a flat fee, or a retainer of some sort. Fee-only planners do not receive commissions or kickbacks from the products and policies they recommend.
• AUM: Assets Under Management is another fee-only approach. With this fee structure, you'll pay a set percentage of the total assets your planner manages. 
• Commission: Commissioned financial planners get compensated based on the products they sell to you. This can cause a conflict of interest, as it motivates them to recommend certain products, even if they're not best suited to your needs.
• Fee-based: A fee-based model is a combination of fee-only and commission structures. You may pay a fee for the planner's service, and they also may receive a commission for certain products they recommend to you. 

Generally speaking, most professionals recommend seeking someone who is fee-only, as this ensures they have your best interests at heart. This includes AUM-based models, which motivate the planner to grow your assets (and avoid losses).

"It ensures the advisor's interests are in line with yours," Steeno says. "They want your assets to increase in value just as you do."

Online financial advisors vs. traditional advisors 

You don't have to meet with a financial advisor or planner in person to get professional help. Many financial advisors offer online services that allow you to get the guidance you need without leaving your home. These usually include phone and video calls, in which you "meet" your planner virtually over Zoom, Skype, or another similar service.

These can be a good option if you want faster, more convenient service or to work with a planner not in your geographic area. 

There are also robo-advisors, which can be used for building and managing your investment portfolio. They're typically more affordable than using a real-life advisor and have low starting balance requirements, but they're also less comprehensive and personalized. Robo-advisors typically won't help with budgeting, estate planning, tax planning, or other non-investment services.

As Rob Burnette, an MRFC and chief executive officer of Outlook Financial Center in Troy, Ohio, explains, "Robo-advisors are only useful for the investment part of a financial plan."

In some cases, robo-advisors may include interactions with a live advisor (sometimes for an added fee). But it's usually not a dedicated account professional, and you may be limited on how many times you can interact with them. This means less consistency and personal guidance than you'd get with a financial planner you hired directly.

"Robo-advisors generally offer a one-size-fits-most solution," says Kris Maksimovich, a CRC and president at Global Wealth Advisors based in Lewisville, Texas. "They lack personalization and input and don't offer hand-holding during periods of market volatility."

A financial advisor or financial planner can help you achieve your long-term goals but choose yours carefully. There are many types of financial planners, and their specialty, costs, credentials, and services should all play a role in your decision. 

Don't be afraid to interview a few candidates. Set up introductory meetings with two or three professionals, and use the time to ask questions, understand their processes and fees, and make sure they're a good fit before moving forward.

Marketing is integral to your business's success in attracting new clients and promoting your brand's visibility. Testing out different strategies is a good way to learn what works best for your business, and what can help to set you apart from the crowd. There are plenty of creative marketing ideas for financial advisors that you might consider adding to your playbook.

Ready to grow your client base? SmartAdvisor can help you connect with leads.

Why Marketing Matters for Advisors

Financial services is a highly competitive industry that sometime competes for a limited pool of clients. Good marketing can help you grab the attention of prospects so that they're convinced to choose your firm over another when seeking out professional financial advice.

Marketing is a tool and when used effectively, it can help you:

• Establish your business's brand reputation and credibility

• Connect with your target client niche

• Spread your message to a broader audience

• Attract new clients to your business

• Solidify your position in the marketplace

Working without a defined marketing strategy is akin to setting off at sea without a GPS to guide you. You may get to your intended destination, but the trip is likely to be much smoother when you have a clear plan to follow.

Creative Marketing Ideas for Financial Advisors

There are certain tried-and-true marketing practices that you may rely on as an advisor, such as a professional website and an email newsletter. But chances are if you're using those tactics, then the competition is too. Flexing your creative skills to think up new ways to market your business could supply you an edge if you're tapping into channels that other firms overlook.

Here are 10 effective ways to creatively market your advisory business and distinguish yourself from the crowd:

Share your knowledge on forums. Online search has become the go-to way to find answers to financial questions for many people. Taking time to answer those questions in online forums like Reddit or Quora can be a simple, but powerful way to market your business. Remember that you're not trying to make a hard pitch here-instead, you want to showcase your expertise while giving prospective clients the answers they need most.

Try direct mail marketing. Many financial advisors would argue that online and social media marketing are where it's at but don't dismiss direct mail just yet. Sending out direct mail is an opportunity to test out different formats and tailor your messaging to your intended recipients. Prospective clients may be more inclined to open a piece of mail out of sheer curiosity, whereas emails can get lost in the shuffle.

Host a client appreciation event. Your clients want to feel valued and hosting an appreciation night is a great way to drive that message home. It's also an opportunity to do something fun outside the confines of an office. For example, you might rent out a local theater and host a private movie night or treat clients to a cooking lesson from a private chef. When deciding what type of event to host, consider what your clients might enjoy most.

Sponsor a local youth sports league. Recreational sports leagues often rely on sponsors to help pay for things like uniforms and equipment. If you cater to clients with children, then sponsoring a local sports league could be a smart investment. You can get more eyes on your brand and you're also building a good reputation for your business in the community by giving back.

Get creative with business cards. Business cards are a must-have as you never know when you'll have an opportunity to hand one out to a prospective client. But you don't have to stick with a traditional business card style. Adding a scannable QR code to your business card shows that you're up to date on tech innovations and it gives prospects a chance to learn more about you.

For example, you can link your QR code to your bio page on your website or a short welcome video on your YouTube channel. The more interactive you can make your marketing efforts, the easier it might be to hold a prospect's attention.

Share a quiz or poll. If you're marketing on social media, sharing quizzes that you've developed can be a fun way to learn more about prospective clients and spark conversation with your followers. You can create a quiz to test their general financial literacy or take a poll to gauge their thoughts on a specific issue, like what they think is the biggest barrier to saving for retirement. Again, these kinds of things are designed to encourage interaction and offer you an opening to offer your services as an advisor.

Create some memorable memes. Memes might seem like an unorthodox way to market your advisory firm. After all, you want to be taken seriously. But the right meme could boost your visibility in a big way if it ends up going viral on social media.

If you're unsure how this marketing tactic works and how to do it well, studying other advisory firms that are leveraging the power of the meme can help. Looking at some examples can help you figure out how to choose the right images and strike the right note with the text to get people interested in your brand.

Get featured on a podcast (or start one). Podcasts are an excellent way to market your business if you're able to leverage an existing following or build a sizable following of your own. If you're not ready to launch a podcast, you can look for opportunities to be a guest on someone else. When scouting those opportunities remember to consider the podcast's typical listener and how well that aligns with your target audience and the people you're trying to reach.

Try TikTok. TikTok marketing can be hugely effective for all kinds of businesses, including financial advisors. There's an entire subset of ‘finfluencers' who are sharing their money tips and advice with followers numbering in the millions, so if you're not marketing here yet you might be missing out.

If you're new to how TikTok works, it may help to spend some time studying trends and the type of content that tends to get the most views. Targeting popular keywords can help you create content that people actually want to watch and share, which can help you get even more eyes on your business.

Advertise in overlooked places. Setting up a billboard by the highway or putting out print ads in a local newspaper are obvious choices for a marketing campaign. But what about marketing your business in say, a restroom stall?

It might seem odd, but bathroom marketing campaigns have been proven to work. (After all, you have a captive audience, momentarily at least). If advertising in restrooms seems too off-the-wall, consider other untapped places where you might run ads so that your target audience is likely to see them.

Bottom Line

Marketing your advisory business creatively means looking beyond the standard methods, though it doesn't mean abandoning them entirely. There's still plenty of value to be had in setting up a professional website or blog, sending out regular email newsletters to your clients and cold-emailing or cold-calling. The more comprehensive your marketing plan is, the more opportunities you may have to connect with new clients.

Tips for Growing Your Advisory Business

• Having a solid online presence can make it easier for clients to find you when they need advice. However, it can take time to drive traffic to a website or build a social media following. Using an online lead generation tool can instantly Boost your visibility and help you find new leads in less time. With SmartAdvisor, for instance, you can get leads delivered to you leaving you free to focus your energies on other aspects of growing your business.

• Leveraging social media to market your business means knowing what kind of messaging your target audience is most likely to respond to and where they typically spend time online. That can help ensure that you're creating social media content that offers value and is likely to be seen by the right people.

Photo credit: ©iStock.com/shapecharge, ©iStock.com/fizkes, ©iStock.com/insta_photos

The post Marketing Ideas and Tips for Financial Advisors appeared first on SmartReads by SmartAsset.

NEW YORK, Nov. 14, 2023 /PRNewswire/ -- R&T Deposit Solutions ("R&T" or the "Company"), a leading provider of tech-enabled liquidity management, deposit funding, and securities-based lending programs, announced today that it has appointed global markets industry veteran Christopher Gerosa as Executive Vice President, Chief Financial Officer - effective February 2024. Mr. Gerosa will report directly to R&T's Chief Executive Officer, Joseph Jerkovich and serve on the company's Executive Committee. In this role, Mr. Gerosa will oversee the Finance Division, including Accounting, Financial Planning and Analysis, Treasury Management and Tax. As the leader of the company's finance team, which includes Esther Cheung, CPA, SVP & Controller, Mr. Gerosa will play a crucial role in shaping and executing R&T's financial strategy.

 "We are excited to welcome Chris to the team and to leverage his deep financial and market experience to help drive our strategy forward, working to strengthen our financial operations and capabilities through further investment," said Joe Jerkovich, CEO of R&T. "As a team, we are focused on continuing to build on our current momentum, developing innovative products and enhancing our client-centric delivery model to achieve further growth. Chris will be an integral part of this effort as we look for ways to Boost our business and deliver key services for sophisticated financial institutions with complex needs."

"We are pleased to have an experienced leader like Chris join the R&T executive team," said Susan Cosgrove, Executive Chairperson of R&T. "R&T has tremendous growth potential and adding someone with Chris' background in the markets to this team will serve the company well as we look to build our platform strategically and efficiently."

Mr. Gerosa joins R&T from MarketAxess Holdings Inc. ("MarketAxess", Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets. Most recently, Mr. Gerosa served as Chief Financial Officer, overseeing a global finance function. He was previously Head of Accounting and Finance with global responsibility for Accounting, Regulatory and SEC Reporting, Tax, Treasury Management, and Financial Planning and Analysis Functions. 

Prior to joining MarketAxess, Mr. Gerosa was the Chief Financial Officer of Primus Guaranty Ltd. ("Primus") from 2010 to 2014 and Corporate Treasurer from April 2007 to 2014. Mr. Gerosa joined Primus in 2003 and was an integral part of taking the company public in 2004. Before joining Primus, he worked in the product controller areas of Deutsche Bank and Goldman Sachs. Mr. Gerosa began his professional career at Arthur Andersen.

"I have admired R&T's business for some time and believe the company is poised for even greater success in this market. This team's approach to solving their clients' complex challenges with innovative and advanced financial products has set them apart in an increasingly important segment of the financial services ecosystem. I look forward to collaborating with the leadership team to help propel the organization and advance our strategy," said Mr. Gerosa.

R&T is a portfolio company of private equity firms GTCR and Estancia Capital Partners ("Estancia"). Estancia originally invested in R&T in 2021 and GTCR invested in 2023, and today's announcement builds on those recent developments. Both firms have partnered with the company to help sustain the growth in its depository network offering while investing to broaden its product offerings and technology infrastructure.

About R&T Deposit Solutions

Founded in 1974, R&T Deposit Solutions provides deposit and liquidity solutions to financial intermediaries around the country. R&T offers a wide range of innovative tech-enabled services to help banks, credit unions, broker-dealers, trust companies and wealth managers meet their unique cash sweep, deposit funding, and securities-based lending needs. Through the Demand Deposit Marketplace^® (DDM^®) program, R&T provides banks and other depository institutions with access to millions of dollars in reciprocal deposits, and underlying customers with access to expanded levels of FDIC insurance on their deposits through other participating banks. R&T also is the trusted vendor of large broker-dealers and other financial institutions that administer their insured cash sweep programs. For a list of banks in our network, visit https://rnt.com/about/bank-lists/.

R&T Deposit Solutions Media Contact
Teresa Murphy
tmurphy@rnt.com

View original content to get multimedia:https://www.prnewswire.com/news-releases/rt-deposit-solutions-appoints-christopher-gerosa-as-chief-financial-officer-301987067.html

SOURCE R&T Deposit Solutions

The United States House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion received an education in the uses of blockchain technology in a hearing titled “Crypto Crime in Context: Breaking Down the Illicit Activity in Digital Assets” on Nov. 15. The hearing was bipartisan in nature, chair French Hill stated at the outset. 

Hill began the meeting by citing an article published by The Wall Street Journal on Oct. 10 on the use of crypto by Hamas for fundraising. The article was corrected on Oct. 27 to reflect more accurately crucial data produced by blockchain analytics firm Elliptic, as Hill also mentioned. He continued:

“Phone and the internet aren’t to be blamed for terror financing, and crypto shouldn’t either.”

In a similar vein, subcommittee ranking member Stephen Lynch stated the hope that “we can put aside some of the preconceived notions some may have.”

The panel of witnesses included representatives of Consensys and Chainalysis, as well as forensic experts and a senior counsel from law firm Hogan Lovells. They spoke about the need for international collaboration and public-private collaboration in stopping the misuse of digital assets, the need for well-crafted legislation and the intricacies of blockchain sleuthing.

Representative Brad Sherman asked Dynamic Securities Analytics president Alison Jimenez for an example of a licit use of a crypto mixer, which she was unable to provide.

Related: Israeli authorities seize crypto from terror organizations, credit new technology

Plenty of other voices wanted to be heard at the same time on this topic. Hill, Representative Tom Emmer, Financial Services Committee Chair Patrick McHenry and Representative Ritchie Torres were lead signers, along with a bipartisan group of 53 more House members, of a letter to U.S. President Joe Biden and Treasury Secretary Janet Yellen on Nov. 15.

The letter requested information on Hamas and Palestinian Islamic Jihad fundraising and the role of cryptocurrency in its efforts. The letter stated:

“It is important to understand the scope of Hamas’s digital assets fundraising campaign in the context of its traditional funding activities.”

It went on to say that traditional fundraising methods “could far exceed” the revenue brought in through crypto, and Congress needs assistance “understanding the size, scope, and duration of Hamas’s digital asset fundraising campaign, as well as accurate information on blocked or forfeited digital assets from terrorist organizations.”

The letter cites the same Wall Street Journal article. On Nov. 12, the WSJ published a second article by the same authors on the use of crypto to funnel money to Hamas.

Also on Nov. 15, the Blockchain Association released an open letter to Hill and other members of the Financial Services Committee. That letter was signed by 40 former members of the U.S. military, intelligence officers and national security professionals who now have links to digital assets companies or venture capital.

They also mentioned the earlier WSJ article, saying they were concerned that the “grossly overstated” and “debunked” article “continues to be used to push legislation that would be counterproductive to U.S. national security interests.”

Encouraging the growth of a regulated, compliant digital asset industry in the United States is the best way to root out bad actors, the letter continued.

Magazine: Tornado Cash 2.0: The race to build safe and legal coin mixers