🌊 The Blue Ocean Prospecting Strategy

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🥞 The Great Pancake Race

“Ready. Set. Go.”

With those three words, hundreds of women in matching checkered aprons and headscarves, grabbed their frying pans and raced through the streets of a small English country town last week…trying not to drop their pancakes en route to the finish line.

It’s a century’s old tradition that traces its roots back to 1445.

The winner’s advice for victory?

“You just have to go flat out and then hope that you’re not gonna fall over.”

Sounds like good life advice, if you ask us.

- Team Advisorist

In Today’s Issue 👇️ 

• The ‘big risk” advisors have to fight against in 2024

• How to prevent clients from being scammed

• Why 90% of Americans are missing out

🛡️ How FAs Can Negate This Big ‘Risk’ in 2024

As powerful as AI is, it also poses massive risks – something people acknowledge in a recent study.

According to a survey from World Economic Forum, 53% of people believe AI-generated misinformation and disinformation is the second biggest global risk for 2024.

That places it behind only “extreme weather,” and ahead of things like cyber attacks and recessions.

As advisors, we have to be aware of how distrustful today’s marketplace is.

Fears over AI misinformation are colliding with an overall lack of trust in the financial services sector in 2024 to create what could be a dangerous concoction for advisors who aren’t prepared.

🤝 How to Survive in a Low-Trust Environment

Open AI, the maker of ChatGPT, just recently announced a new AI video maker that can turn short text descriptions into 60-second ultra-realistic videos.

Google just recently previewed a similar tool.

And then you have deep-fake social media videos making it look like people are saying things they aren’t.

To be honest…it’s a little bit of a scary time.

As advisors who are already fighting an uphill battle against robo-advisors and AI investment platforms, now’s the time to really lean into the specific characteristics that set us apart…our personalities and our stories.

😃 Tips for Building a Personal Brand in a Generic AI Landscape

• Show Your Face. Whatever you do, don’t hide online. If the only picture that exists of you on your website and social profiles is the same headshot you had taken 10 years ago, it’s time to rethink your approach. Get used to showing your face – post pictures and videos regularly to build trust.

• Share Your Personal Life. Drawing a hard line between your personal life and professional life is overrated. (It might even be dangerous advice.) The best way to build trust is to share your personal life with clients and prospects. LinkedIn, Facebook, and even your email list are all great places to do this. Tell people about your hobbies, family, and life goals.

• Hang Your Hat on Something. You want your personal brand as an advisor to be very clear. The best way to do this is by becoming known for something specific. Take a stance on something and really own it. This could be annuities, the growing national debt, or even a local financial topic that’s relevant to your city or state.

Headline Roundup

🏠 Affecting Your Clients

• Study: Just 63% of Advisors Feel Prepared for Retirement [Y!]

• Credit Card Users Can Save $400/yr by Switching Issuers [CNBC]

• Average 401(k) Balance is Just $112,572 [Y!]

📈 Markets & Economy 

• China Cuts Benchmark 5-Yr Lending Rate for 1st Time Since June [CNBC]

• 10-Year Treasury Yield Spikes Above 4.3% [CNBC]

• Mortgage Rates Shoot to 2-Month High After Inflation Report [CNBC]

💼 Industry Roundup 

• 1-in-3 Americans Aren’t Saving for Retirement [GBR]

• IRS Aims to Close ‘Inequity Gap’ for Unpaid Taxes [CNBC]

• Bitwise Bitcoin ETF Approved Option for $30B Advisor Network [CS]

🥷 How to Prevent Your Clients From Being Scammed

According to a new report, Charlotte Cowles, a financial advice reporter for New Yorker Magazine was recently scammed out of $50,000 by a random caller claiming to be an FBI Agent.

In what has to be one of the biggest “if it can happen to her, it can happen to anyone” moments of all-time, Cowles says a man called her last October saying he had her Social Security number, home address, names of family members, and information about what was happening in her apartment in real-time.

They convinced her that her identity had been hacked and she was now associated with a slew of cybercrimes and money laundering charges that would soon be traced back to her.

Long story short…she put $50 G’s in a shoe box, taped it up, and handed it to a guy in a white Mercedes.

Soon after, she realized it was a hoax. 😬 

💪 How to Protect Clients From Scams

It’s easy to read that story and think “I’d never do that,” but who knows?

In addition to ensuring you don’t fall victim, you owe it to your clients (particularly senior clients) to educate and protect them.

Here are some of the top scams to inform your clients of:

• IRS Impersonators. More than 2.4 million people fall victim to fake IRS demands for money each year. (That’s almost 1% of the adult population.) These scammers claim the individual owes them money and that they could lose their home or be sent to jail if a large sum isn’t paid immediately.

• Sweepstakes Scams. With these scams, fraudsters congratulate the individual on winning a “sweepstake.” But in order to receive the money, they must first pay taxes and fees.

• Grandparent Scams. With these scams, the individual impersonates the victim’s grandchild and claims they’re in some sort of legal trouble that requires a wire transfer to get out of.

Consider recording a short video discussing these scams and how to spot them. Then send that video out to your clients via email.

🗓️ Upcoming Industry Event Calendar

Today @ 12pm EST: Virtual Advisor Power Hour

Feb 28-Mar 1: LLIS Insurance Academy 2024

Mar 5: RIA Masterclass

🧮 By the Numbers

90%

According to a new study, that’s the percentage of Americans who will collect Social Security payments early – potentially costing them thousands.

Research shows that delaying benefits to age 70 can boost your monthly payment by 77% (versus claiming them at age 62).

✌️Good Vibes

This past week, bus driver Larry Farrish Jr. noticed first-grader Levi feeling down on pajama day. He didn’t have any PJ’s to wear.

"It hurt me so bad," Larry said. "That just wasn't my Levi, and I wanted him to have a good day. No child should have to miss out on something as small as pajama day."

Determined to brighten Levi's day, Larry went to the store after finishing his route and bought him several pairs to choose from.

"When he got me the pajamas, I did a happy cry," Levi said.

For Larry, he claims he was just doing his job.

"They become my kids after they leave their parents," Farrish said. "I make sure they get to and from school safe, but I also try to bring some type of joy to their lives."

Sharing looks good on you.

When you copy that link at the bottom and share it with a few financial planning colleagues, you look like the smartest advisor in the room by keeping them informed.

Plus, you earn rewards. Sweet.