Category: Core7 Blog

DILIGENCE — Careful and persistent work or effort. 

Diligence is a necessity in any endeavor that you take. Diligence ties in with enthusiasm. It is difficult to be diligent about anything you are not enthusiastic about. 

Without diligence and hard work, a Core7 Professional will become lazy. Lazy is just another form of sloppiness. When you are sloppy, you miss the key details that can make all the difference for your clients and your business partners. There is no trick or easy way to accomplish something of value. Nothing good comes from taking the “easy road”, or going through the motions.

“What we hope ever to do with ease, we must first learn to do with diligence.” 
– Samuel Johnson 

BALANCE — An even distribution of weight enabling someone or something to remain upright and steady. 

Balance and being consistent controls emotions, and enables systematic consistent growth. When you don’t follow a system consistently your business is out of control, out of balance and sloppy. When things are done the same way each time with increased balance and consistency, it causes incremental growth and avoids any peaks and valleys. You will become consistently stronger over time.

Being consistent and executing the process creates a predictable and systematic outcome every time. Having balance avoids inconsistency in your business, in referrals to your partners and in adding value to your clients. 

Balance “the major work of the world is not done by geniuses. It is done by ordinary people with balance in their lives, who have learn to work in an extraordinary manner.”

” Without balance a life is no longer worth effort.”
– Olin Steinhauer 

ENTHUSIASM — Having or showing intense and eager enjoyment, interest, or approval. 

You have to love what you do in order to work hard and diligently as well as be good at what you do. If you lack enthusiasm for your job, you cannot perform to your best ability. Hard work and diligence are not possible without enthusiasm.

If you lack enthusiasm for your Core 7 group and the Core 7 system, you cannot perform at your best. You will have trouble having the “tough love” conversations with your client and your referral partners. These conversations are critical for their benefit. Hard work and working the system is not possible without enthusiasm.

“Nothing great was ever achieved without enthusiasm.”
– Ralph Waldo Emerson 

DETAIL ORIENTED — Fully aware of or sensitive to something small but important. 

Being aware of the small details that can make all the difference in the success of any system, particularly the Core 7 system, is critical.
It leaves nothing to chance, and limits mistakes and difficulties making things easier to execute successfully.

There are many small things in the Core 7 referral system that make all the difference between a good outcome or no outcome at all. Having a system where you can predict the outcome of almost every aspect of your business is very valuable. At Core7 we encourage learning the key details about your partner’s business to help you generate more referrals and to add more value to your clients. Each step in the Core 7 process has a specific purpose. At Core 7 we don’t want to take any chances on details that are important to performance. Everything possible that we think of that could affect the performance is taken into consideration. We don’t leave anything to chance. The relevant details, done right, are the foundation of Core7’s success. There is no single big thing. There are tons of little things that, if done right, and done consistently create maximum success. It’s easy to be lazy or sloppy when it comes to the details.

“The difference between mediocrity and excellence is attention to detail.”
– Sebastian J. Barbarito 

MUTUAL RESPECT (or respectful) — Mutual respect is the foundation for honesty, trust, and meaningful communication. 

This strengthens your team. You need to respect your entire team and respect what they do. When you respect someone, you give more effort to them and receive more effort in return. You can’t have mutual respect without emotional consistency. Mutual respect strengthens your team, and makes it so there are no favorites.

Having respect for your team and what they do makes you work harder at executing the system for everyone’s benefit. You will give everything you have when you respect someone. It also allows for candid professional dialogue during the feedback and the hot seat sections of your Mastermind group meetings. Mutual respect makes everyone equal and eliminates the food chain mentality that can sometimes happen with the Core 7 professionals which is never positive for your clients. Respect will also help you stay consistent with the Core 7 system. Respect leads to increased loyalty.
Mutual Respect 

“When mutual understanding and respect are present, the spirit of synergy starts to develop.”
– Stephen R. Covey 

ACCOUNTABLE — (of a person, organization, or institution) required or expected to justify actions or decisions; responsible. 

Being accountable creates predictability and consistency. That in turn creates trust. Accountability is necessary for high performance and results. When you are accountable you are accepting responsibility to do the right thing in all aspects of the endeavor or task.

Accountability in executing the specific actions of the Core 7 system is the most important part of the referral system. Being accountable to your specific referral partners at specific times in the process, done in a specific way is how your team wins, and most importantly, how your client wins. Accountability is a choice.

“The right thing to do and the hard thing to do are usually the same.”
– Steve Maraboli, Life, The Truth, and Being Free. 

INTEGRITY — The quality of being honest and having strong moral principles; moral uprightness. 

Hold yourself to a higher standard, have higher values, and stay focused on the system. Be very principled with your team and your clients. Have concern for your clients and your partner’s interest above your own. Always seek to consider the merits of your clients and your partner’s needs.

In order to execute the Core 7 process to maximum efficiency, integrity and always doing the ethical thing for your clients and your business partners is demanded. You need to put their interest above your own. Be very principled with your team and your clients. Have concern for their interests, and their businesses. Results definitely matter, however individuals who are quick to quit in tough times, and will leave when there is a better chance at making money elsewhere, lack loyalty, allegiance, and commitment.

“Integrity is doing the right thing. Even when no one else is watching.”
– C.S Lewis 

DECISIVE — Settling an issue; producing a definite result. 

When everything is clear and definite regarding a plan or an outcome, it creates incredible certainty and transparency. Being decisive makes you intentional in everything you do.

C7- Core 7 professionals are committing to follow a system that produces a definite yes or no result. No client is ever forced into anything. However, they are being asked the specific questions that produce the specific desired Core 7 results. Belief in the decision to follow the system with integrity is one of the most important decisions in being a Core 7 professional.

“The only man who never makes mistakes is the man who never does anything.”
– Theodore Roosevelt  

LEADER — The action of leading a group of people or an organization. 

Leading your clients through a process as a guide and keeping them on the most efficient path to financial success and well-being is your job as a leader. It’s critical for this to be a trait of the Core 7 professionals because there will be people who will not let you lead or guide them. You need to be able to identify them and know that they could possibly affect the value and service you provide to your loyal clients and business partners. This keeps you intentional about your goals.

Showing strong leadership in guiding your clients through the process and not allowing them to deviate takes dedication, leadership, and most importantly, belief. As a leader you know the best way to navigate through the process to guide them to success and peace of mind. Also keep in mind that no leader can lead without good content.

“A leader is one who knows the way, goes the way, and shows the way.” – John C. Maxwell
 

PREPARED — Make (something) ready for use or consideration. 

Being prepared is critical to providing the best advice and value to your clients, but also to (maximizing we) maximize the success of your collaborations with your partners. Being prepared always result in the best possible outcome. Weather (be) advising clients, attending meetings, making decisions or giving referrals to your partners.

C7- being prepared for your Mastermind group meetings and your 1 on 1 partnership planning sessions is critical to the success of your group. This means being prepared with your lead trackers, feedback and introduction for your partners, as well as doing the upfront research before advising a client. Being prepared is one of the most important aspects in having successful Mastermind group meetings, 1 on 1 partnership planning sessions, and advising your clients properly.

“By failing to prepare, you are preparing to fail.”
– Benjamin Franklin 

BELIEF — Trust, faith, or confidence in someone or something 

Belief – to believe and have faith in something, you need to understand the what and the why of it. Belief will keep you focused and give you the patience necessary to make a difference. Good things take time. You need to believe you are doing the right thing.

C7- like enthusiasm, belief is necessary for executing the Core 7 system. You need to believe not only in the process, but also in your partner’s integrity and skill. Good things take time and commitment, like getting to know the process and getting to know your partners. It’s essential that you have faith in the belief you are doing the right thing. People who believe in themselves create belief in others. To ensure maximum belief in the Core 7 system, you need to keep focused on the end game and the value of your core team not only to your business but to your clients. This will keep you focused on consistent learning, and the execution of the system. At Core7 each professional plays a key role in the team’s success. Each member is there for a reason, a reason that in some way contributes to the group success and the clients success. Having a clear belief in all of this is vital to making it a reality.

“Believing takes practice.“-Madeleine L ‘Engle  

CONFIDENCE — The state of feeling certain about the truth of something.  

Confidence – if you are clear on your purpose, the details of the system, and your goals regarding your clients and business partners, you will have the confidence to execute the system efficiently as well as be patient to stay focused on incremental, consistent improvement and results.

C7- being confident and trusting the system is required for Core 7 to be successful. Having confidence in your partners is also necessary. In order to have the entire group confident in each other you must communicate openly and give feedback candidly during your Mastermind group and one-on-one partnership planning sessions. You need to endure the process, and tenaciously pursue the skills that allow you to reach your own level and your team’s level of competency. Having confidence to stay focused and follow the process is a necessary trait in any endeavor. 

“What could we accomplish if we knew we could not fail.”-Eleanor Roosevelt 

PATIENCE — The capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset. 

Patience – good things take time. The goal is incremental growth and consistent improvement over time. You need patience to stay the course and to stay diligent to follow the process. Keeping an eye on the big picture and staying focused on value to your clients and partners will give you the needed confidence to be patient.

C7- patience is required for you and your partners to learn the Core 7 process, the Core 7 Scripps, and the Core 7 referral systems to achieve incremental growth and success. To have patience you must also have belief and confidence that the Core 7 system will work as it is designed and that good things take time. The better you become at the course of the referral system, the more referrals you will get and the more value your clients will receive. 

COMMITTED — The state or quality of being dedicated to a cause, activity, etc. 

Commitment and integrity go hand in hand. Having integrity to always do the right thing will keep you committed to the cause.
Commitment is at the center of everything you do. It develops persistence and ambition which are critical to success.

C7- to follow any system is always a challenge. The key to staying committed to the Core 7 is believing and executing the system. That means attending each meeting, listening to the course 7 university modules, participating in the monthly Q&A sessions, preparing your lead trackers before each meeting, making introductions to clients and professionals to benefit your partner’s businesses, and putting your client and partners interests above your own. To do all this requires a strong commitment as in anything that can make a difference and an impact. 

“Unless commitment is made, there are only promises and hopes; but not plans.”
– Peter F. Drucker 

“He that can have patience can have what he will.”
– Benjamin Franklin  

SUCCESS  — The accomplishment of an aim or purpose. 

Success – your purpose as a Core 7 professional is to help your clients and referral partners to reach their goals financially, and create better lives for their families.

C7- achieving success in the Core 7 system is helping your clients have a complete team of advisors, helping your clients protect their finances, and helping them reach their personal and family goals to achieve peace of mind regarding all things financial.

Helping your Core 7 partners improve their businesses in a predictable, systematic, and accountable fashion, having a “client first” business, and reaching the ultimate level of your professional competency is what we at Core 7 view as success. 

“Success is most often achieved by those who don’t know that failure is inevitable.”
– Coco Chanel, Believing in Ourselves: The Wisdom of Women 

This is the second of a six-part series of posts on how to use the first two pages of a tax return to identify referral opportunities. Click here to go to the beginning of the series.

LINE 45- AMT, also known as the alternative minimum tax. Now, there are so many advanced tax strategies to look at when someone is in the AMT. This presents a great opportunity for a financial advisor and an accountant to collaborate together for the benefit of the client. This is an example of how the whole team working together can be a huge advantage to a client. I always like to make the introduction like this ” Mr Smith, the alternative minimum tax is such a complicated subject, it would really make sense for you to review this not only with an accountant but also a financial advisor. How is your relationship with your financial advisor who specializes in tax strategies?”

LINE 76 AMOUNT YOU OWE IN TAXES if a client owes money, it presents an opportunity for them to consider “cash flow planning”, by establishing a budget to review cash flow and creative ways to offset taxes. Suggest they speak with a financial advisor to help them with this. Here is how I suggest bringing this up,
” Mr Smith, I see you owed some taxes last year. Have you done any cash flow planning? How is your relationship with your financial advisor who specializes in cash flow planning. I think it could make a big difference?”

This module shows some quick and easy ways to add value just from the first 2 pages of a Tax Return. Just bringing these subjects up, and making the introduction to an expert can create massive changes in an individual’s life.

I hope you enjoyed this module. Please comment below, and we will be in touch soon.

This is the second of a six-part series of posts on how to use the first two pages of a tax return to identify referral opportunities. Click here to go to the beginning of the series. For the sixth part of the series, click here.

LINE 17- this relates to real estate, and is particularly important. If there is not a number here, it means they are not incorporated. And as we said earlier, being incorporated is always a good protection strategy to be looked at with a financial advisor.

LINE 25 Health Savings account deduction. If there is nothing listed in this section, and the individual works for a corporation. The question needs to be asked if they should be using their corporations health plan? Ask your client if they have an HSA? And then ask “how is your relationship with your financial advisor who can help you review the options? With all the different health plans offered today, many clients need help deciphering all of their options.

LINE 28 Self employed SEP, SIMPLE, and qualified plans .We reviewed this earlier, but will touch on it again very quickly. This section will let you know if a business owner has a retirement plan set up. As I said earlier, there are so many financial planning strategies to help business owners. You can really make a difference.
Do they have a retirement plan set up, and are they funding it?

Is their spouse funding a retirement plan? Again, there are huge advantages to the self-employed and fully funding a spouses retirement is one opportunity that’s available. And as we’ve discussed all through this module, it creates a great opportunity to ask how their relationship is with their financial advisor. And if they don’t have one it’s an easy introduction.

LINE 32 IRA deduction- if your client is not contributing to a 401 K for some valid reason. For example, maybe their company doesn’t offer one? It’s always makes sense to suggest opening an IRA?

LINE 33 This is regarding student loan interest deductions . This is an excellent way for an advisor to provide a huge benefit to a client. There are so many new ways to consolidate and lower the interest rates on student loans. This is a great way to free up cash flow to invest in other vehicles. It’s just another way to introduce a financial advisor that can help a client analyze their options.
For example if your client has a high income, and is not able to take advantage of this deduction, there may be an opportunity to lower these payments and potentially create opportunities to invest the savings in other vehicles, pay down debt, or allocate those dollars to something more beneficial to that particular client.

This is the second of a six-part series of posts on how to use the first two pages of a tax return to identify referral opportunities. Click here to go to the beginning of the series. For the fifth part of the series, click here.

When reviewing clients tax returns, it’s important to look in the deduction category. This shows the number of withholdings. If this number is large for example the client is claiming four dependents, that could mean they are not maxing out their pre tax retirement investments, and could open up the opportunity to make an introduction to your financial advisor partner to review options. Now, if the number in this section is low, for example 0, and they are maxing out their pre-tax retirement plan, then you may want to suggest they claim more so they have the opportunity to invest those earnings and start earning interest on that money sooner. I always say, “Why let the government earn interest on your money, when you can?”

Now, It’s easy to tell how much is being invested in someone’s 401k for example, just by looking at box D on their w-2 form. All of these examples create the opportunity to introduce a financial advisor. Just make the suggestion using the referral generator.

“Mr. Jones, looking at your tax return I see you aren’t claiming any withholdings from your paycheck. It may make sense to claim a few dependents to be more productive with your earnings. How is your relationship with your financial advisor who can help you with this?

LINE 13 & 14- (these 2 areas address capital gains and losses. This should basically follow the same concepts as the taxable interest section when it comes to referring. Great questions to ask are:

• Are you earning enough on these accounts?
• Is it possible to save on taxes by moving to a tax-deferred account for long term growth?
• Have you thought about moving to a more tax advantaged strategy?
• And how is your relationship with your financial advisor who can help you with this?

LINE 15 A & B- Ok, if there is a number listed here, and it is taxable, that means the client withdrew the money for something. If it is not taxable that means it was a roll over, from a job change for example. If you see that the person is younger, there could be a problem or something that needs more elaboration. If the client is older it may have been a distribution.

The main point is that all of these scenarios create the opportunity to ask the referral generator question. We aren’t necessarily giving concrete advice here, we’re just bringing some potential opportunities up that create an easy transition to introducing an expert to help them. Noticing these opportunities really makes it easy to say, “how is your relationship with your financial advisor who can help you create a strategy?”

This is the second of a six-part series of posts on how to use the first two pages of a tax return to identify referral opportunities. Click here to go to the beginning of the series. For the fourth part of the series, click here.

Ok, here’s a big one.

LINE 12 Business Income

If there is something filled out here, it usually means this person is a self employed business owner. There are a ton of financial planning opportunities for the self-employed that are typically not being utilized. This is one of the best opportunities to refer your core 7 financial advisor partner.
So, if box number 12 is filled out, there are a few referral generator opportunities.

Number one is very simple, it’s just saying “Mr. Smith, being self employed, there are many financial products to help you be more tax efficient. How is your relationship with your financial advisor who specializes in financial planning for the self-employed business owner?”

Number 2, if box 12 is filled out, and there is nothing listed in box number 17 Rental real estate , royalties, partnerships, S-Corporations, trusts, etc., that typically means they are not incorporated. I believe that almost every business should be incorporated for protection reasons. This creates the opportunity to say “Mr. Smith, we are filing taxes as a sole proprietor on your Schedule C. It may make sense to incorporate for protection reasons. We should review this together with a financial advisor. How is your relationship with your financial advisor who specializes in working with the self employed?”

Noticing a client is self-employed by seeing the number in line 12 also corresponds to line 28 which shows if they have a SEP Ira, creating the opportunity to ask if there maximizing their deduction with a SEP or other retirement vehicle.

Basically, you want to see if there are any opportunities to create a qualified plan. Always ask are you funding your qualified plan? Is your spouse funding a qualified plan? That’s one of the great things about a sep. IRA, you can fund your spouse’s retirement plan with the proper business structure.

There are so many opportunities for a self-employed business owner, let’s illustrate one more great opportunity. Many times, there are partners, and there is a need to discuss an exit strategy. This may include a buyout plan insuring a key man, or buying out a spouse. Many of these factors need to be discussed. Ask these questions, and look to make introductions to your financial advisor partner when there is a need, and your client needs advice.

This is the second of a six-part series of posts on how to use the first two pages of a tax return to identify referral opportunities. Click here to go to the beginning of the series. For the third part of the series, click here.

Line 8a- TAXABLE INTEREST- if you notice there is a lot of taxable interest in this section, there are many reasons your client could benefit from speaking to a financial advisor. The proper way to suggest this is like this “Mr Smith, there may be an opportunity to reallocate these funds into a more tax efficient strategy like a tax-deferred vehicle. Are you earning enough interest on that cash? Is it possible to save on taxes by moving out of taxable interest funds, and into funds that can grow tax-deferred for the long term? How is your relationship with your financial advisor?

LINE 9- ORDINARY DIVIDENDS- if there are high numbers in this section, it would be beneficial to know the rates of returns on the funds, as there may be a better investment strategy? It may make sense to move to a more tax advantaged standpoint. The way I suggest to ask this question is “Mr. Smith, have you considered moving this money into a tax-deferred vehicle, so that you are not paying taxes on it every year?

LINE-10 TAXABLE REFUNDS-Now, if there is a big number here, there may be the opportunity to suggest increasing contributions to their 401k. (Before making this suggestion, always be sure to check the client’s income and the w2 to get a better idea if this suggestion is feasible.

Now as we said earlier, in no way are we pressing our clients to execute this. We are just trying to create opportunities to ask the referral generator question, to suggest a possible discussion with a financial advisor for the benefit of the client. So for example, if an accountant sees a large number in column number 10, and verifies that the client is not maxing out their 401k, the accountant can say “Mr Smith, you have a large amount of taxable interest that you are paying taxes on, and I also noticed that you aren’t maxing out your retirement contribution. There may be a great opportunity to offset some taxes. How is your relationship with your financial advisor who specializes in retirement? It is always beneficial to show a tax benefit when making these suggestions.

Here’s another example, if you notice say a $5,000 to $10,000 here, it may be better served as monthly cash flow and directed towards a 529 plan, or retirement, or just as forced savings just to build up cash reserves. The point is to make the introduction to someone who is an expert that can help your client analyze their options.

This lesson is going to address some very simple cross sell introductions that can be found on the first 2 pages of a tax return. So if you are an Accountant or any professional who requires a clients tax returns to do their job. This module will show some great ways to generate value and outgoing referrals to your Financial Advisor partners.

There are very simple cross sells that can be done with little effort when you have a clients 1040’s and especially during tax time if you are an Accountant. We all know that Accountants are so busy processing so many returns that they can hardly think of making introductions. These cross sells can be accomplished by simple emails to the client suggesting they speak with a Financial Advisor. It’s really that easy.

This training is also excellent for a Mortgage Originator, or any professional who works with a client and needs to obtain tax returns.

Now let me address something upfront, this tutorial does show many opportunities to give referrals, however this doesn’t mean that you should jump on every client with every opportunity. These are just some examples that may present themselves, and give you a chance to add value to your clients, appropriate referral. Because we know following the Core7 Referral system, and making an introduction to a good Financial Advisor can be so beneficial to your client’s overall financial plan.

Okay let’s move through the return from top to bottom.

One of the first things to look for on the first two pages of a tax return is under exemptions. Look at the number of dependents a person has. For example, if a client has children under 17 it can lead to many different discussions. The opportunities to look for are number 1, if the children are to the younger side, say less than two years old, being sure there is proper life insurance in place is critical. And if they are a little older then a college savings fund or student loan conversation could be appropriate at this point.

The best way to ask this question is” have you done any planning around kids regarding college planning? If the answer is No you should then ask, how is your relationship with your financial advisor who specializes in college planning?

Having dependents can trigger another great question. “Have you done any planning to protect you in the case of premature death or disability?
Another great opportunity is to ask the question “Have you done the proper estate planning to protect your assets and avoid having to go through probate?” (as we know going through probate can be a huge burden on a person’s heirs). This can create the opportunity to ask how is your relationship with your financial advisor? As they are the first step in the planning process.

Another important aspect that may be important to the client regarding the ages of one’s dependents is if they are at the age where they may be graduating from daycare or pre-school. Many times this can free up a lot of monthly cash flow to invest, pay down debt, or use in any way to create a better financial situation. It definitely makes sense to have a conversation regarding this opportunity.

Now before we were review the Financial Professional’s primary referral targets, I want to cover a key principle that everyone needs to understand regarding the Financial Advisor, Estate Planning Attorney, the Accountant, the Property and Casualty Insurance Agent, and how they work together.

These professionals are always doing business and exchanging referrals , just in their natural flow of business. It’s kind of like how a Mortgage Originator, a Realtor, and a Real Estate Attorney or Escrow Officer do business. It naturally flows with their normal process. Quite simply, if these professionals aren’t doing business together, then they aren’t doing any business. These 4 professionals are all necessary to any clients for financial plan.

Ok lets start with the Financial Advisor. The Financial Advisor has a ton of referrals to give out. The difficulty that a Financial Advisor has, is to stay focused on their primary referral targets, as they have opportunities to refer almost every professional in the Core7.

The primary referral targets for a Financial Advisor are the Realtor and the Estate Planning Attorney.

As we said earlier, there are many others, but the Realtor and Estate Planning Attorney are the professionals that the Financial Advisor needs to stay focused on.

So let’s start with the referral to the Realtor.

Each and every time a Financial Advisor meets with a client, the clients net worth should be calculated. Real estate , which can fluctuate needs to be factored into this equation.

So each time this presents an opportunity to use the referral generator question to generate an introduction to your realtor partner.

“Mr Smith, because we want to have an accurate account of your net worth, we’d like to know the value of your property. How was your relationship with your Realtor who specializes in equity investments?”

Nowadays Financial Advisors have valuation software on their money management systems. Many times this software is not very accurate. What a great opportunity to make the introduction.

There are also so many opportunities when people are moving, buying their first home, or downsizing. Be sure to listen to the modules we recommend in The Core7 Referral System Course, where we go into much more detail regarding the process.

My Core 7 Financial Advisor has been able to refer so much business to our realtor using this process. It’s really such an easy handoff.

The second primary referral target for the Financial Advisor is the Estate Planning Attorney.

Very few people have a will, health care proxy, or a durable power of attorney. This is an easy hand off from the Financial Advisor. We do a deep dive regarding this handoff in the Primary Referral Targets Module located in the Core7 referral System Course.