1. PROFESSIONALISM AND TRUE PROFESSIONALS Steven G. Blum

2. Who am I?  My career allows me to look at these issues from 3 perspectives:  Professor  Lawyer  Practicing Planner and Partner in a Wealth Management firm

3. Why I Wrote This Book  Who is the target audience  What it covers  Part I: Negotiation  Part II: Applying This Form of Negotiation to Investing  Part III: Some of the Basic Economics of Investing  The book considers, in Part II, these basic questions that anyone working with a financial planner must address: -conflicts of interests -asymmetric information - who should be trusted -responsibilities of a professional

4. What Do You Seek From Your Doctor?

5. What Do You Ask of Your Doctor?  Skill Based Expectations  Loyalty and Trust Based Expectations

6. What Is Fiduciary Duty?  Duty of Care:  Duty of Loyalty :

7. Some Systematic Challenges Facing Your Clients  Conflict of Interest  Practitioner may have strong financial incentives to steer client in particular direction  Financial service providers have historically been compensated through commissions, revenue sharing, hidden fees, etc. Conflict may be more than just financial

8.  Asymmetric Information  Financial Advisors know much more than the average investor  It is very easy to take advantage of clients  The results of this unbalanced relationship are seen hundreds of times on a daily basis

9.  Trust  Who can be trusted  Blind trust is wildly expensive  Almost impossible to know who is truly trustworthy  Best alternative, according to economists and negotiation teachers is to trust those whose incentives inspire trustworthiness, and do not trust anyone whose incentives direct them to defect

10.  True Professionalism  Society has long struggled with the practice of professionalism  The traditional professions are organized, in part, to promote professionalism: doctors, lawyers, clergy  What constitutes a profession Long and rigorous training Credentialing Significant socialization Standards, rules and regulations and the loss of credentials upon misconduct

11. Advancing True Professionalism in Working with Other People’s Money  Professionalism should denote an implied duty of “care taking” in addition to advanced skill and knowledge  There is a necessity to assist the undereducated in retirement planning to avoid a greater social burden  Professionals must be mindful of their responsibilities and the disparity in experience and education between themselves and their clients

12. What Should You Do? Look for opportunities to advance your levels of skill, experience and understanding Use your education and expertise and knowledge with utmost integrity Make explicit your acceptance of the professional duty to safeguard and promote your client’s well-being above all else

13. A Tremendous Opportunity Align what you do for your clients with what they are seeking and expecting from true professional Act in a way that is totally trustworthy and then invite them to place their trust in you In all ways, act toward them as you would want the professionals serving you to act  What Results?