IC Differently

M.A.I.N. Street - The Language of Risk

Why to never tell a client that you'll do all the work for them.

Investors may not want the burden, but they do want to maintain choice and control.

Which approach gives you more confidence?
We'll do all the work for you. 8%
We'll help you navigate the risks and rewards of the markets. 92%

M.A.I.N. Street - The Language of Risk

Which phrase gives investors the most confidence in an investment strategy with no track record?

Without a track record, advisors have to explain what the strategy is based on. Is it 60 years of trends, 30 years of forecasts or recent trends? It's a little of both, with "adjustments" to long-term fundamentals.

Which investment strategy gives you the most confidence?
The strategy that is...
built for today's markets based on recent trends 18%
grounded in long-term fundamentals with adjustments for today's markets 70%
designed based on forecasts for the next 30 years 8%
based on the trends of the past 60 years 4%

M.A.I.N. Street - The Language of Risk

Do investors want the advisor who manages $725 million in assets or the one who limits his accounts?

Investors like successful advisors, but not successful advisors who grow too big and become inaccessible. By communicating that you limit your accounts, you're giving prospective investors confidence that you share their concerns.

Which advisor would you prefer to work with?
Bob manages over $725 million for his clients 27%
Bob limits his active accounts to less than 100 clients 73%

M.A.I.N. Street - The Language of Risk

Do investors want to "minimize losses" or "maximize gains?"

If they are forced to choose between the two, investors would much rather focus on "maximizing their gains." Why? Because they invest to make money, not to not lose money. The best answer, however, is to focus on both with "strategies that offer upside potential with downside protection."

Which interests you more? An investment that...
Maximizes my gains 69%
Minimizes my losses 31%

M.A.I.N. Street - The Language of Risk

Is it the "I-factor" or the "you-factor"?

Although much of our print, verbal and web communications are "I-and we-centric," investors overwhelmingly prefer the "you-centric" communications that begin with their issues and concerns. It's a simple fix. Just count the pronouns in your communications. If you're using "me and my" more than "you and yours," then you are too heavily balanced in the "I-factor."

New Word Order

"Longevity Risk" is a toxic phrase. Here's a better way to say it.

Longevity is a risk to the insurance companies guaranteeing lifetime income. It is not a risk to investors and this is why the phrase is confusing to them. Investors would much rather talk about "having enough money for as long as they live."

Survey Question
Which interests you more?
Making sure you have enough money as long as you live 90%
Managing longevity risk 10%

CONNECT to your Invesco representative, who can tell you more about the Invesco Consulting programs.

New Word Order

Heard on the Street video - investors are asked to define Wall Street jargon

The video shows that some investors clearly don't understand the language we use with them every day. Worse, they may believe they know what the terms mean - and they might be far from correct.

CONNECT to your Invesco representative, who can tell you more about the Invesco Consulting programs.

New Word Order

Do investors want "financial freedom" or "financial security?"

Investors aren't quite sure what it means to be financially free and are pretty certain they'll never achieve it, but financial security is likely something they can realistically achieve with the right financial advice.

Survey Question
In retirement, I want...
Financial Security 85%
Financial Freedom 15%

CONNECT to your Invesco representative, who can tell you more about the Invesco Consulting programs.

New Word Order

"Why you don't want to offer your clients their dream retirements."

Because investors do not think it's plausible that advisors can provide them with dream retirements from lofty investment returns. In fact, advisors can lose credibility with investors for even suggesting unrealistic dream retirement.

Survey Question

National survey of 800 investors, March 2011

When it comes to retirement, my top priority is…
Comfortable Retirement 57%
Current Lifestyle 32%
Dream Retirement 11%

CONNECT to your Invesco representative, who can tell you more about the Invesco Consulting programs.

New Word Order

"Knowledgeable"

Research from the "New Word Order" program revealed that investors prefer advisors who are "knowledgeable" over advisors who are "experienced." They believe investment professionals don't necessarily learn from their experiences. They also believe that advisors with many years of experience may be "old school."

Survey Question
Which of the following attributes do you most want to see in your advisor? That they are...
Knowledgeable 51%
Tested 12%
Experienced 33%
Educated 4%

Connect to the Invesco Blog

Boardroom Presenting

Seating Strategy

You're in charge of a boardroom presentation. Do you mingle your team with theirs? Or do you arrange the seating with an "us vs. them" approach? The answer? It's all about the sightlines. The key presenters on your team should have direct sightlines to the key decision makers on their team.

Connect to the Invesco Blog

New Word Order

"Costs"

Research from the "New Word Order" program revealed that investors are much more open to paying for "costs" than "fees" or "commissions." They believe that anything of value costs something, but that fees and commissions provide them no benefit.

Survey Question

National survey of 800 investors, March 2011

Which of the following do you LEAST like to pay as an investor?
Commissions 26%
Fees 53%
Charges 15%
Costs 6%

Connect to the Invesco Blog

New Word Order

"Portion"

Our research showed that if financial advisors don't say "for a portion of your portfolio" when discussing investment ideas, investors are potentially a little more defensive because they might presume the advisor wants ALL of their money.

If your financial advisor recommended you put your portfolio into a single, well-diversified fund that seeks to maximize the potential for growth while minimizing your downside risk, how likely would you be to do it?
Likely 50%
Unlikely 50%
If your financial advisor recommended you put a portion of your portfolio into a single, well-diversified fund that seeks to maximize the potential for growth while minimizing your downside risk, how likely would you be to do it?
Likely 90%
Unlikely 10%

Connect to the Invesco Blog

StorySelling for Financial Advisors

"You can't control the direction of the wind, but you can control the direction of your sails, which is why I believe active portfolio management is critical in these shifting markets."*

Use analogies, metaphors and truisms with the goal of simplifying investment ideas for your clients.

* For illustrative purposes only.

Connect to the Invesco Blog

StorySelling for Financial Advisors

Diversification

"Which elevator would you feel safer in? The one held up by one cable or the one held up by three cables? There's safety in numbers."*

Use analogies, metaphors and truisms with the goal of simplifying investment ideas for your clients.

* For illustrative purposes only. Diversification does not guarantee a profit or eliminate the risk of loss.

Connect to the Invesco Blog

StorySelling for Financial Advisors

"Investing with just one or two securities in your portfolio is a little like playing 18-holes with just one or two clubs in your bag. Consider adding the right tools for the challenges ahead."*

Use analogies, metaphors and truisms to simplify investment ideas for your clients.

* For illustrative purposes only.

Connect to the Invesco Blog

StorySelling - Office Stories

Stick Pins and a Map

A financial advisor in Florida has a large map in his office with stickpins placed in his clients' hometowns. His new and prospective clients immediately see from the map that he knows other people who have relocated from their towns, and that he has experience in advising clients new to the area.*

* For illustrative purposes only.

Connect to the Invesco Blog

New Word Order

Tell-and-Show

There are two ways to use charts, hypotheticals and illustrations with clients. One is to "show-and-tell" the information by showing your clients the data as you're explaining your point. Your clients will be distracted as you talk, looking at all of the points, writing and colors in the graph as you speak. The second way is to "tell-and-show" the chart. Tell your clients the point you are making, then show them the chart for validation and support. We feel it's much more effective in communicating complex points to clients.*

* For illustrative purposes only.

Connect to the Invesco Blog

MAIN Street - The Language of Risk

Personalized Financial Plans

Which type of investment strategy do you prefer? A _____ strategy.
Tailored 14%
Personalized 44%
Customized 18%
Individualized 25%

Connect to the Invesco Blog

Tell Me More

Tell Me More Loglines from Financial Advisors

  1. "I work with investors with the goal of rebuilding and designing their portfolios for upside potential and downside protection in today's unforgiving markets."
  2. "I build retirement portfolios for clients who are ready to leave their careers."
  3. "I seek to help retirees who want to increase their income by pulling weeds from their outdated portfolios."

For illustrative purposes only.

Connect to the Invesco Blog

Tell Me More

Tell Me More Loglines from Financial Advisors

  1. "I seek to help middle income clients focus on financial independence through debt management and retirement planning."
  2. "I seek to help multi-tasking parents avoid neglecting their finances with hassle-free, long-term plans."
  3. "I work with dual-income parents with the goal of turning hard-earned incomes into well-deserved outcomes."

For illustrative purposes only.

Connect to the Invesco Blog

Tell Me More

Tell Me More Loglines from Financial Advisors

  1. "I build financial plans for affluent investors who want to maximize returns, minimize risks and not compromise on taxes."
  2. "I try to give my clients reliable financial plans so they can lose sleep over something other than their investments."
  3. "In today's over-regulated environment, we seek to provide "peace of mind" to our clients with a knowledgeable three-step process."

For illustrative purposes only.

Connect to the Invesco Blog



The opinions expressed are those of the author and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

Diversification does not guarantee a profit or eliminate the risk of loss.

"New Word Order" is based on our firm's research with Maslansky + Partners 2007-2012. Invesco Distributors, Inc. is not affiliated with Maslansky + Partners.

"Boardroom Presenting" is based on our firm's research with Jim Morel of JAM Consulting (2000) and Maslansky + Partners (2007-2011). Invesco Distributors, Inc. is not affiliated with Jim Morel, JAM Consulting or Maslansky + Partners.

"StorySelling" is based on the book, StorySelling for Financial Advisors: How Top Producers Sell by Scott West and Mitch Anthony (2000) published by Kaplan Publishing. Invesco Distributors, Inc. is not affiliated with Mitch Anthony.

"M.A.I.N. Street" is based on our firm's research with Maslansky + Partners 2007-2012. Invesco Distributors, Inc. is not affiliated with Maslansky + Partners.

"Tell Me More" is based on our firm's research with John Evans (Screenwriter) and Bob DeRosa (Screenwriter) in October 2011. Invesco Distributors, Inc. is not affiliated with either John Evans or Bob DeRosa.

Invesco Consulting programs are for illustrative, informational and educational purposes only. If the illustrations herein are used outside of the designated audience, it is the respective user's responsibility to ensure that such material complies with all applicable regulations and is filed with the appropriate regulatory bodies if so required. We make no guarantee that participation in these programs or utilization of any presented content will result in increased business. It does not constitute a recommendation of the suitability of any investment strategy for a particular investor.

Invesco Consulting (I•C), the sales consulting group within Invesco Distributors, Inc., has been specifically created with the needs of financial professionals in mind to help provide the best experts, latest research and turnkey training programs to the financial services industry.