April is National Financial Literacy Month, an annual observation NAIFA wholeheartedly agrees with. But why is financial literacy important and what are we doing about it?

FINRA surveys consistently show that around two-thirds of Americans lack basic financial understanding, and their lack of knowledge is significant. Those who score higher on FINRA’s financial literacy quiz show a greater tendency to earn more than they spend, have an emergency fund of three-months’ salary or more, contribute to retirement accounts, and accurately estimate their retirement savings needs.

In addition, consumers who are more financially literate are better equipped to manage their debt and avoid high-interest loans, more likely to save and invest effectively, and more likely to manage financial risks and cope well with unexpected financial challenges and emergencies.

NAIFA Supports Financial Literacy

During April and throughout the year, NAIFA promotes financial literacy. Life Happens, NAIFA’s consumer outreach arm, created and coordinates important consumer outreach campaigns, like Insure Your Love Month, Disability Insurance Awareness Month, and Life Insurance Awareness Month. Life Happens provides financial professionals with tools and resources to educate consumers. During National Financial Awareness Month, Life Happens is creating a social media toolkit of posts and graphics that will soon be available to NAIFA members.

Financial professionals play an important role in improving financial literacy among their clients and in their communities. They often go well beyond providing products, services, and guidance, and empower those they work with to understand things like budgeting, saving, investing, borrowing, debt management, retirement planning, and risk protection. Many NAIFA members volunteer in their broader communities, working with schools, churches, libraries, local governments, civic groups, or business organizations to provide financial literacy education. Understanding among consumers leads to better decision making and improved financial security. We highlight NAIFA members’ good work in the Advisor Today blog, on our social media accounts, and in the Advisor Today Podcast series.

Advocating for Financial Literacy

NAIFA chapters have leveraged their political grassroots influence to encourage state laws adding personal finance courses to high school graduation requirements. Students are required to have basic proficiencies in math, English, science, and other subjects. Doesn’t it make sense that they should graduate with some understanding of financial matters? Not only does this provide them a base of knowledge as they face the prospects of making their own personal finance decisions, but it also could build enthusiasm and encourage some to pursue insurance and financial services as a career.

In 2023, Alabama, Connecticut, Idaho, Indiana, Louisiana, Minnesota, Montana, Oregon, West Virginia, and Wisconsin passed measures to require public high school students to take a one-credit course in financial literacy before graduating. To date, 25 states have passed similar measures.

At the federal level, NAIFA members continue urging lawmakers to join the Congressional Financial Literacy and Wealth Creation Caucus co-chaired by Reps. Young Kim (R-CA) and Joyce Beatty (D-OH). The Financial Literacy and Wealth Creation Caucus aims to equip Americans with the skills and resources they need for economic stability, wealth-building, and prosperity.

Educated consumers are more financially secure, promote the robustness of the U.S. economy, and provide a market for important insurance and financial products and services. It’s hard to overstate the importance of financial literacy this month and every month.

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Have you ever wondered if great leaders are born or made? Anyone can be a great leader if they understand themselves, know what motivates others to want to follow them, and apply what they learn.

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

Do you know how to get your message across and have others want to follow you?

Let’s look at six leadership styles so you can better understand your style and how to motivate others better.

Leadership Style #1: Commanding Leadership

The Commanding Leadership style, one of the most aggressive of the six leadership styles, expects and demands immediate compliance to their orders. They have a style that accomplishes tasks by ordering and dictating to people. A good example of this style is a drill sergeant!

The Commanding Leader lives by the motto: “Do what I tell you!”

This style works best when team members lack skill or expertise. For example, a rookie needs direction on what to do and how to do it.

Leadership Style #2: Visionary Leadership

The Visionary Leadership style is a leader who has a vision and wants the team to help make it a reality. These leaders clearly understand what direction the company needs to move towards because they have a clearly defined vision and can explain what it will take to make it happen. An example of this style is how Elon Musk leads his company.

The Visionary Leader lives by the motto: “Come with me!” 

This style works best when an organization is adrift because it creates a new vision and direction. Typically, it should be used when a company needs significant change or when team members are willing to follow someone into an unknown future.

Leadership Style #3: Affiliate Leadership

The Affiliate Leadership style focuses on building relationships. They want to create harmony within the team, leading to a more productive workplace. Affiliate leaders provide constructive feedback to team members. An example would be the boss who buys a birthday cake for each team member on their birthday to show that they care.

The Affiliate Leader lives by the motto, “People come first.”

This style best works when a team is in crisis, or a new team is being created. This style allows you to be effective when building team connections, improving communication, increasing morale, and repairing broken trust.

Leadership Style #4: Democratic Leadership

The Democratic Leadership style encourages team members to participate in the decision-making process because it welcomes ideas. This style is helpful in teams where members are highly skilled because encouraging team members leads to increased creativity and new ideas. An example is a branch manager who has never been in production but has an experienced office of advisors whom they trust.

The Democratic Leader lives the motto, “What do you think?”

This style works best when you, as the leader, are unsure about the direction to take because it encourages creativity and innovation. As a result, employees take ownership of their ideas.

 Leadership Style #5: Pacesetting Leadership

 The Pacesetting Leadership style leads by example. In other words, they set the pace. An example is the top producer in the office who becomes the producing branch manager and is still the top producer or the senior advisor on a team who always seems to close prospects.

 The Pacesetting Leader lives by the motto, “Do as I do!”

 This style works best when you need fast results from a motivated team, such as running a cross-selling campaign to set appointments with clients to do a life insurance review!

 Leadership Style #6: Coaching Leadership

 The Coaching Leadership style motivates team members who enjoy being a part of a group. Team members receive clear expectations, which creates skilled, productive individuals who can go on to coach others. An example is the branch manager who has the third-year rookie coaching the brand new rookies on how to handle objections.

The Coaching Leader lives by the motto, “Try this!”

This style works best when the leader identifies the strengths and weaknesses of each team member and then provides guidance so team members can improve and eventually teach others.

Why Learning Your Leadership Style Works

The reason why learning your leadership style works is that some styles work better depending on a specific situation. When you understand what leadership style to use and when you inevitably help others want to follow you.

In Advisor Solutions Podcast Episode #91, Learning Your Leadership Style, you will find a much more detailed description of each style, the pros and cons of each, and when to apply them. And, as a result, it will help you to become a better leader!

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NAIFA-Columbus members, mark your calendars for April 11th at 12 pm Eastern for the Q2 State of NAIFA webinar. Learn about the latest on NAIFA’s progress, advocacy efforts, and how you can get the most out of your membership.

This 30-minute webinar will feature insights from Tom Cothron, NAIFA President, Kevin Mayeux, NAIFA CEO, and Diane Boyle, NAIFA SVP of Government Relations. They'll provide a comprehensive update on NAIFA's current position, our advocacy work, and  NAIFA programs aimed at supporting your professional development.

Attending is key to staying informed about the latest NAIFA initiatives and understanding how these efforts contribute to the financial services profession. If you're unable to join live, simply register for the event, and we’ll send you the recording to ensure you don’t miss out on this valuable webinar.

This webinar represents an important opportunity for all members to engage directly with NAIFA's leadership, to gain insights into our collective progress, and to see how together, we're shaping the future of our industry. 

The quarterly State of NAIFA reports demonstrate NAIFA's commitment to transparency. They are also a great way for leaders and members to stay abreast of everything going on with their association. The online event is open to anyone interested in NAIFA's success, so please invite members and nonmembers, alike.

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NAIFA-Columbus hosted a membership luncheon and panel discussion focused on “Interest Rates, Savings Vehicles, and the 2024 Real Estate Market” on March 20th, 2024 at the OSU Fawcett Center. During the event NAIFA-Columbus President, Mark Yerke held a Pinning Ceremony and introduced the new NAIFA members in attendance.

The panel was moderated by NAIFA-Columbus Immediate Past President, Scott Blake. During the panel, Robert Sprague and Jason Harris discussed the path of interest rates and shared their outlook on expectations for the local housing market for 2024, addressing both challenges and opportunities, as well as the new savings vehicles that are now available in Ohio.

Robert Sprague became Ohio's 49th Treasurer of State on January 14, 2019. As Treasurer, he serves as the chief investment officer for the state's investment and debt portfolios, oversees the daily cash flows of state monies, and serves as custodian of certain funds and investment assets outside the state treasury. Treasurer Sprague is committed to improving Ohio and the lives of its residents through trusted stewardship, wise investment, and bold innovation. These principles have been at the heart of his work since the start of his administration.

Jason Harris, Senior Vice President of Mortgage Lending at Guaranteed Rate. With two decades of dedicated service to central Ohio homebuyers and partners, Jason is committed to enhancing clients’ market understanding and facilitating informed decisions in collaboration with realtors and financial planners. Recognized by Scotsman Guide, a national industry publication, Jason has been named a top 50 lender nationally and has secured the #1 spot in Ohio for two consecutive years.

TO OWN A HOME IN OHIO IS TO INVEST IN OHIO.

The Ohio Homebuyer Plus program creates specialized, tax-advantaged savings accounts to assist Ohioans on their homebuying journey. Individuals who open an account will have access to above-market interest rates and may also qualify for certain Ohio state income tax deductions. Learn more at https://tos.ohio.gov/homebuyerplus/

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NAIFA has formally elected its officers and Board of Trustees at its annual business meeting as part of the National Leadership Conference and Belong awards celebration in Washington, D.C.

Thomas M. Cothron, LUTCF, FSCP, Agency Manager at Southern Farm Bureau Insurance in Ocala, FL, a loyal member since 1981, will serve as NAIFA’s 2024 President. Douglas B. Massey, LUTCF, CLU, ChFC, FSS, Owner of Doug Massey Financial Services in San Angelo, TX, a loyal member since 1987, will be the 2024 President-Elect. Both Cothron and Massey have served the association in multiple roles including national Trustee, State President, and specialty committee roles throughout their leadership tenure.

Brock T. Jolly, CFP, CLU, LACP, ChFC, CLTC, CASL, RICP, Partner at Veritas Financial LLC/MassMutual Financial Group in McLean, VA, a loyal member since 2001, was elected to continue to serve as NAIFA’s Treasurer. Bryon A. Holz, CLU, ChFC, LUTCF, CASL, LACP, President of Bryon Holz & Associates in Brandon, FL, and a loyal member since 1987, will serve as Immediate Past President beginning January 1, 2024.

Christopher L. Gandy, LACP, Founder of the Midwest Legacy Group in Lisle, IL, will be the 2024 NAIFA Secretary. A current member of NAIFA’s Board of Trustees, Gandy has been a loyal NAIFA member since 2003. As incoming Secretary, Gandy will be in line to serve as President-Elect in 2025 and President in 2026.

Stephen Kagawa, FSS, LUTCF, was elected to serve a two-year term on the NAIFA Board of Trustees. Kagawa, a loyal NAIFA member since 1986, is Founder and CEO of the Pacific Bridge Companies in Monrovia, CA. This will be Kagawa’s first time serving as a National Trustee for NAIFA.

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The Department of Labor thinks it knows what's best for Americans preparing for retirement. NAIFA President Bryon Holz, CLU, ChFC, LUTCF, CASL, LACP, and his long-time client Chuck Ross think the DOL is wrong and bring their real-life experience to the argument.

Bryon and Chuck offered a unique perspective when they testified at a DOL public hearing that the Department's latest fiduciary proposal will harm consumers. Unlike any of the other witnesses, Bryon and Chuck have been working together for decades as advisor and client.

Their real-world experience – Bryon was already a seasoned professional when the DOL first imposed its fiduciary rule in 2016 and he saw its impact firsthand – brought authentic voices to the DOL proceeding and complimented the testimony of industry lobbyists.

Real-World Impact

Bryon testified that consumers are best served when they can choose how and from whom they receive financial services. The current DOL proposal would force many advisors to move to a fee-for-service model tailored to higher-income clients. It ignores that some clients are better served by existing models.

Chuck offered his own case as an example. When he began preparing for retirement, he had limited assets and very likely would not have been able to work with Bryon had the DOL proposal been in place.

"By moving forward with this Proposed Rule, the Department is ignoring the negative impact this rule will have on lower- and middle-income savers and the real-world experience that NAIFA members saw firsthand before the 2016 Fiduciary Rule was vacated," Holz testified.

NAIFA, along with the American Council of Life Insurers, initiated a lawsuit challenging the earlier DOL fiduciary rule. A federal appeals court in 2018 vacated that rule. The DOL's current proposal shares many of the flaws of its predecessor.

NAIFA members develop relationships with clients based on trust and results. Even Timothy D. Hauser, the Deputy Assistant Secretary for Program Operations of the DOL's Employee Benefits Security Administration (EBSA), acknowledged the impact of Bryon and Chuck's testimony. "It's one thing for people in the business to testify but it's another for one of your clients to step forward. Thank you."

A Fight We Have to Win

With so much at stake, NAIFA strongly urges the DOL to withdraw its recycled rule. We are working with members of Congress on both sides of the aisle and urging their opposition, as well. We will continue to oppose the DOL proposal and explore all options to preserve consumers' ability to choose from a variety of financial service models.

There are things you can do to help:

•  Take Action at NAIFA's Legislative Action Center by sending a letter opposed to the DOL proposal to your members of Congress.
• Be sure to keep your NAIFA membership up-to-date. If you have a year-end renewal date, don't let it lapse. Renew today!
• Encourage your colleagues who are not NAIFA members to join us. The greater our numbers, the louder our advocacy voice grows. Given the current DOL threat, we need all financial professionals to be a part of our efforts.
• Mark your calendar for NAIFA's Congressional Conference, May 20-21, and sign up to get an update when registration opens.

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NAIFA 2023 President Bryon Holz, CLU, ChFC, LUTCF, CASL, LACP, and 2024 President Tom Cothron, LUTCF, FSCP, cut the ribbon on NAIFA's new national headquarters in Arlington, VA, in early December. Also participating in the ceremony were NAIFA Past Presidents Tom Michel, LACP, CLTC, and Larry Holzberg, LUTCF, LACP.

NAIFA CEO Kevin Mayeux, CAE, welcomed guests to the ceremony, which also featured a reception and open house. He said that along with NAIFA's merger with the Society of Financial Service Professionals and addition of Life Happens, the association's move to Suite 1890 at 1000 Wilson Blvd. will help NAIFA better serve its members and fulfill its mission. David Maola, the CEO of FSP, also delivered remarks at the ceremony and spoke about NAIFA's bright future and the enduring impact of FSP brand as an industry leader in professional development. 

The facility features a newly renovated conference space that is available to NAIFA, as well as members and chapters, to host meetings, training sessions, and other events. NAIFA recently held its Apex East signature event there.

The new headquarters is in the Rosslyn section of Arlington, very convenient to Reagan National Airport and Washington, D.C., are Metro transit system. The building is just across the Potomac River from Washington, D.C., and features stunning views of our nation's capital. 

NAIFA's Board of Trustees at the ribbon-cutting

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NAIFA’s Board of Trustees and the Board of Directors of the Society of Financial Service Professionals have both voted unanimously to approve a merger agreement between the two associations. The votes come after the membership of NAIFA and FSP both voted overwhelmingly in favor of the merger earlier this year.

Three officers from the FSP Board and one from Life Happens, which also has joined the NAIFA enterprise, will serve on NAIFA's 2024 Board of Trustees.

With the mission of “Empowering financial professionals and consumers through world-class advocacy and education,” the unified organization will be known as NAIFA but will encompass a robust professional development wing led by and branded as FSP. 

Members of the combined association will benefit from a broad member benefits portfolio. Resources concerning the merger and how it benefits members are available on NAIFA’s website.

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November is National Long-Term Care Awareness Month and it is a great time to bring potential limited and extended care planning needs top-of-mind with your clients. It is important for every comprehensive financial plan to include LTC considerations. So even if LTC insurance is not your primary line of business, Long-Term Care Awareness Month gives you a good opportunity to get clients up to speed.

Fortunately, NAIFA's Limited & Extended Care Planning Center (LECP) offers expert connections and resources on a variety of LTC planning options you can discuss with your clients. LECP kicked off the month early with a special Halloween event, "Don't Be Scared of Long-Term Care." The recorded presentations and presentation slide decks from the event are now available on demand.

Learn from some of the best in the business on a variety of important topics. 

• Tom Riekse, Managing Director, LTCI Partners - "Don't Be Afraid of Too Many Choices! Why the Many LCT Insurance Options Are Great for Financial Security Professionals and Their Clients."
• Jamie Sarno, Vice President of Medicare Supplement & Specialty Health Products, Amerilife - "Resurrecting the Sale"
• Chalen Jackson, Key Accounts Specialist, Senior Marketing Specialists - "Help Your Clients Avoid Skilled Nursing Purgatory - Mitigating Medicare Coverage Gaps"
• Patrick Cahill, CRPC, RICP, Head of Strategic Accounts, Coventry - "The Secondary Market for Life Insurance: Uncovering the Hidden Value"
• Tim Vannoy, CLU, ChFC, CFP, Regional Account Director, Care Solutions, OneAmerica - "Don't Be Scared of Hybrids"
• Corey Anderson, DIA, President and Founder, DI Geek - "The DI Geek: Don't Be Scared of Disability Insurance"
• Kevin Sypniewski, President and CEO of AGIS Network - "Large Employer Worksite: Traditional LTC... Dead or Alive?"
• Cindy Harris, Director of Sales, LifeSecure - "Get Into the Spirit and Talk LTC With Your Clients"
• Thomas Krause, J.D., Vice President of Sales and Marketing, The Krause Agency - "Leveraging Medicaid-Compliant Annuities in Crisis Long-Term Care Planning"

Another great resource is LECP Executive Director Carroll Golden, CLU, ChFC, LTCP, CASL, FLMI, CLTC, LACP. Her latest book, How Not to Tear Your Family Apart: A Practical Guide to Caregiving and Financial Stability, an Amazon bestseller in three categories, is a story about a family who successfully plans for extended care using a practical three-step process.

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