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In this issue:
Why I Like Being a Trust Officer
ITA Conference A Great Success
ITA Seeking Volunteer For Committees
Strategic Asset Allocation
Is Your Business Senior Friendly?

Why I Like Being a Trust Officer

by James R. Tiedje, 2006-2007 ITA President, Vice President Trust and Business Development, Quad City Bank & Trust

First, I want to say thank you for the honor of serving as your president this past year. This is a great professional organization and I encourage members to continue to support the efforts and be involved. We are fortunate to have many members who have been actively working for years to promote our profession and keep the membership informed on important issues relating to our business. You know who you are, and I say thank you especially to this group of individuals.

I started in this business 22 years ago. How I ever came in the back door to become trust officer considering the background I came from, I'll always wonder. When I graduated from the University of Iowa in 1970 with a degree in social work, I thought I was going to save the world. I tell people now that my social work background has actually helped me a great deal in my career. I say, " I'm a social worker for rich people". My guess would be that many readers of this would say the same about themselves. I have never met another trust officer who always knew that they wanted to be a trust officer. But, I would also predict that any survey done in our industry on the satisfaction level of our group would show most are happy with their chosen profession. There is not a much better feeling in life than the one that comes from when a client says to us, "You do so much for me and I just don't know what I would do without you".

I find it so very satisfying when I can meet the many needs of my clients. As trust officers, we know that what we do is so much more than just invest the money. Being able to look at the much broader picture and meet the needs of generations of families is so much more rewarding than just handling transactions. My friends know very little about what I do. I even find myself reeducating my spouse often about what I do and why it is important. After 22 years, I feel much more confident in telling the story and selling the service to new prospects. We in this profession need to feel good about what we do and then "go tell it on the mountain". We should all support the effort by being active in the Iowa Trust Association.

Again, I want to say thank you for the opportunity to serve as president of ITA.

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ITA Conference A Great Success

A special thank you to all who helped make the 2007 ITA Annual Conference a great success. Over 70 trust professional attended this years event featuring sessions on regulatory updates, generation skipping tax, asset allocation, legislative updates, trust compliance, economic trends and advance planning for IRAs. Special sessions were also held this year for operations personnel discussing industry hot topics. This year's event was approved for 7.5 hours of CLE credit, 11 hours of CTFA credit and 3 hours of CFP hours.

Fourteen exhibitors were present at this years event. Thank you to representatives from these companies for sharing their products and services with attendees.

Accutech Systems Corporation - Dave Moore Broadridge - Jessica Kruszka Federated Investors - Shawn Knutson Feldman Securities Group, LLC - Paul Marnell Goldman Sachs Asset Management - Mike Droese INFOVISA, Inc. - Jeff Kingston Main Street Advisors - Rick Milton Proxy Trust - Walt Lotspeich WB Capital Management - Brian Rolland Society of Senior Advisors - Ron Caskey Resource Insurance Consultants - Holly Higgins, Jeff Jones Home Instead Senior Care - Steve Habernicht Thomson Tax & Accounting - Les White

Thank you also Bankers Trust for their sponsorship of the conference.

Mark your calendar for next year's ITA Annual Conference. The event will be at the West Des Moines Marriott on October 9-10, 2008.

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ITA Seeking Volunteer For Committees

Your involvement if vital to the Iowa Trust Association! Whether your interest is in legislative affairs, public relations, communication or public relations, there is a place for you. There is no better wway to grow your career, your company or your industry than to serve on one of the ITA's committees.

What's In It For You:

• Leadership Opportunities
• Experience that can enhance your career
• Visibility within your industry
• Being part of a committed team
• Networking with other active professionals in your field

If you have questions or would like to volunteer for an ITA committee, please e-mail ITA's Darcy Burnett or call 800-800-2353.

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Strategic Asset Allocation

By Brian Rolland
A lot of research today concludes that the single most important and fundamental factor impacting the long-term success of an investment portfolio is strategic asset allocation. Asset allocation refers to the distribution of an investment portfolio across various asset types and classes. The impact of asset allocation far exceeds the impact of tactical asset allocation or market timing and actual stock or bond picking.

What is Asset Allocation? Asset allocation is the process of combining asset classes such as stocks, bonds and cash in a portfolio in order to meet your goals.

Asset classes can be further allocated across types of bonds, market-capitalization and markets. The table below shows that the highest returns are not achieved in the same asset class each year. In 2004-2006, international stocks provided the highest return while in 2003 it was small-cap stocks, 2002 long-term government bonds, and so on.

It is impossible for anyone to consistently predict which asset class will out-perform in a given year. As a result allocating or diversifying across the many asset classes significantly impacts and increases the opportunity for long-term success of an investment portfolio.

In today's highly competitive trust and fiduciary marketplace, prospective clients are not simply looking for differentiation through strong fiduciary expertise. They are also looking for access to an investment manager who can provide an efficient strategic asset allocation program that will result in a highly diversified investment portfolio. The portfolio should minimize risk, result in the preservation of capital and increase the probability of strong performance over a long-term horizon. An effective allocation program should also incorporate tactical allocation shifts and periodic rebalancing. All aspects of this approach assist in establishing reasonable expectations for the client. And there is no better retention tool than achieving consistent investment returns.

Experts also estimate there are over $10 trillion in trust assets in the U.S. today that will transfer to the next generation in the future. Research shows that approximately 10% of the generation transferred assets will remain with the same investment advisor. You can better position your trust department and bank to retain these assets and expand relations if you have access to a strong strategic allocation program.

Brian Rolland, CPA, CMA, CTP Vice President Institutional Consultant, WB Capital Management Inc. Brian Rolland is a member of the sales, marketing and client services team at WB Capital Management Inc. He may be reached at (800) 343-7084 or brolland@wbcap.net.

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Is Your Business Senior Friendly?

By Ed Pittock, President, Society of Certified Senior Advisors
In a society where it appears that youth counts and age doesn't, many businesses fail to realize that some 35 million seniors control 70% of the nation's wealth. As a result, the senior market is often overlooked and under-served.

Maddy Dychtwald, one of the nation's leading authorities on generational marketing, points out that a generation ago, one in four people age 65+ lived in poverty. Today it's fewer than one in ten. In the last fifty years, this segment of society has gone from being the poorest to the richest through a combination of saving, investing, pension programs and windfall profits from rising home costs.

More important, this market is growing significantly. Baby boomers are turning 50 at an unprecedented rate of 1 in every 10 seconds. That's more than 12,000 each day and more than 4 million a year for each year of the next decade!

If you currently serve or plan to tap into this profitable, expanding market, a few words of caution. To be successful, you must take the time and make whatever changes are necessary to ensure that every aspect of your business is senior-friendly.

Just what is a senior friendly-business? A senior-friendly business takes into consideration the needs and desires of senior customers and behaves in a manner that respects seniors and their contributions to society. It strives to meet seniors' expectations for quality service, comfort, personal contact, a satisfying experience, convenience and security.

One way to determine whether your business is senior-friendly is to conduct an audit of your facility, communications and operations. You can start by looking at how your staff perceives seniors. Do you or does anyone on your staff think of seniors as low-income, infirm, doddering old folks not worth their time or trouble?

If the answer is yes, it's time for a reality check. Seniors today do just about everything younger adults do. In general, seniors are healthier than ever before. They love to socialize and stay in touch with friends and family via the internet. They may work full or part-time, travel, exercise, volunteer or pursue hobbies. They can do what they want, when they want, because they have the time and money to do so.

Another question you should ask is: How does our staff talk about, talk to and serve seniors? Does anyone use pejorative terms such as "geezer," "over the hill," or "old as dirt?" Do they talk to seniors in simple sentences, very slowly or loudly as if they were talking to a child? Do they assume that someone with a physical impairment also has a mental impairment? Are they impatient when it takes longer for a customer to make up their mind, pay for something or use a credit card? Do they help younger more affluent-appearing customers first?

Watch your team and note if they get frustrated on the phone when the client doesn't hear well or understand what is said. Are they unwilling to spend the time necessary to solve a problem, locate what the customer wants or explain the product or service in-depth? Do they drop or ignore a senior customer if they can't close the deal or make the sale right away?

If the answer is yes to any of these, then re-training or re-evaluating your staff is in order. Seniors should always be treated as welcome guests and offered help without being intrusive. At all costs, they should never be addressed as "dear," "sweetie," "honey" and the like.

When it comes to sales of a product or service, seniors appreciate advice but don't want to be talked down to or patronized. If what you are selling is complicated or a major financial decision, be aware that older people don't always process information quickly, so don't try to make a fast sales pitch. The best approach is one that demonstrates the advantages of your products or services and gives the prospect time to review their options and make a decision.

To be senior-friendly, your employees should come to the job with a positive, respectful attitude towards seniors, an understanding of the aging process and knowledge of common courtesies. Inappropriate dress, body art or piercing may also be a turn-off to a senior customer or client. Depending upon your product or service, you may find that more mature staff can relate better to seniors.

Finding the right employees and training and motivating them to provide seniors with high quality service can pay off big. Studies show that seniors place a high value on personalized service and see the service they get as important as the product they purchase. Seniors use an extensive referral network of friends and family before they buy so quality service can earn you new, repeat and referral business. This is where training from organizations such as Society of Certified Senior Advisors can be so valuable, because it improves understanding, communication and effectiveness with seniors.

Beyond the obvious necessity of having a team with a positive attitude and courteous and friendly demeanor with senior customers, there are physical and operational considerations that can make a big difference in how well you serve seniors.

Take your location for example. Is it close to where seniors live, shop, volunteer, socialize or work? Is the signage and directional information large and easy-to-read from the streets surrounding your business? Are you close to mass transportation? If not, can you cooperate with other entities or create a way to bring customers to you?

What about parking? The safest and most convenient option is a parking lot or garage that is adjacent to the entry to your building. If you have parking, ask your customers if they have any problems finding the entry and exit signs or difficulty parking their vehicles.

Three ways to make your location more attractive is to add more handicapped spaces than required, provide "senior only" spaces, and widen the size of each space or stall. While the "senior only" spaces would rely on people's good faith, the added parking would be an indication of your desire to serve senior customers.

Your building is the front door to your business. It should be welcoming and well-maintained. Make it easy for seniors to enter and navigate your premises. Seniors with arthritis or degenerative diseases may find it difficult to open heavy commercial doors. Installing automatic doors or push-button doors solves that problem. Customers with canes or with walkers or wheelchairs appreciate wide ramps, wide doorways, wide aisles and stairs with handrails. Look out too for dangerous buckling carpets and loose carpet strings. Highly polished or wet floors should be roped off and alternate routes should be well-marked. Clean restrooms, of course, are a must.

Examine your interior signage and office set-up. Are the various departments or divisions clearly marked? Is there someone right inside your door ready to welcome and assist your customers? Do you have comfortable chairs, a waiting room or conference room and a place to hang coats or store packages? Is there sufficient room for wheelchairs?

Seniors are busy people, often on the run. Do you offer your customers or clients complementary beverages or snacks? Are phone, fax, copy machines and internet access available in your waiting room or place of business?

Professional services firms and financial institutions should pay special attention to issues such as lighting, noise and printed communications. Many seniors have good vision and hearing, others don't. They may have vision problems ranging from diminished eyesight to degenerative eye disease and/or various degrees of hearing loss. As a senior-friendly business, make sure you provide good lighting and quiet, comfortable spaces where senior customers can review documents and consult with you. Keep a magnifying glass and extra sets of reading glasses handy and keep piped-in music or other noise down.

Printed materials must be easy to read and easy for clients and customers to store. Communicating with seniors is a subject unto itself but here are a few pointers. Choose larger bolder type whenever possible on everything from business cards, brochures and sales pieces to financial documents, instructions and invoices. Reverse type, that is white type on a dark background, should be avoided as it is very difficult to read.

Review your materials with an eye to not only how they look, but also to how easy they are to understand and digest. Include a comprehensive index and mini-executive summary for each topic. Create headings and subheadings to explain what information will be covered in each section and use shorter paragraphs for easier reading. Finally, submit duplicate copies of the information and provide the materials in a bound format. Loose pages get lost or out of order and can be very frustrating to read and file.

Once you've completed your internal audit, let your senior customers and clients know that you want to make your business more senior-friendly. Survey them and ask them what their expectations, likes and gripes are. Be thick-skinned and accept their insights graciously and gratefully. With the audit and survey in hand, you should be well on your way to creating a business that is truly senior-friendly. The process may seem like a lot of work but as one expert has so wisely pointed out, the management of a business that fails to pay attention to demographics for five years may wake up to find itself in a different business than it thought it was in-or not in business at all.

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