“The Money Guys” squeezed into a radio control room in Costa Mesa one recent weekday to begin a new half-hour show to promote their company, Applied Financial Planning.
The five financial advisers were careful not to mention certain words, like their past performance or forecast. They knew well not to discuss an endorsement from their friend, nationally syndicated talk-radio show host Hugh Hewitt.
Instead they focused on how entrepreneurs can take advantage of laws and retirement strategies to reduce their taxes.
“We are the Money Guys of Applied Financial Planning, and you are listening to Money Wise with the Money Guys,” Sean Walker, one of the advisers, said in a baritone. “If you have any questions about the Money Guys, shoot us an email or visit our website. Independent, unbiased, transparent—that’s Applied Financial Planning.”
The Money Guys’ new radio show, which began last month, is one of the many creative ways that Orange County’s investment advisers are telling the public about their services.
They hold seminars, write thought-leadership and white papers, and talk to the media on national business shows.
Irvine-based Index Fund Advisors Inc. has its own studio and has made almost 400 videos; last year, it even made a 72-minute movie that’s available on Amazon.com.
U.S. securities laws have long restricted what financial advisers can say in their advertisements or in public.
Advisers said in recent years that the regulations have become more onerous, even to the point of restricting the use of “likes” on Facebook or responding to criticism on Yelp (see related story, page 18).
Writing as Marketing
Popular modes of marketing are writing blogs, thought-leadership articles or newsletters that are often emailed.
“It’s a way for clients to get to know how we think before they sign on,” said David Hutchison, a partner at Newport Beach-based Triad Investment Management LLC, which manages $126 million. “We’re trying carefully to raise our visibility by sharing our knowledge.”
Newport Beach-based Pacific Investment Management Co., one of the world’s largest money managers, with $1.5 trillion under management, publishes blogs, thought-leadership or white papers every week. Their views are often repeated in news articles by Reuters or Bloomberg News, and are fodder for conversations on business channels like CNBC or Fox Business News.
“Our extensive range of thought-leadership allows us to keep all of our clients up to date with market and investment views quickly and simply,” said a spokesperson for the firm. “Whether it’s a short video, a blog or an in-depth paper, we aim to constantly add value so that our clients can stay ahead of the market.”
Seminars
Seminars are another popular way to reach clients. Merrill Lynch holds one monthly at different restaurants and hotels around the county. About 100 clients attend the events to discuss the economy, government, women’s issues, Social Security and Medicare, said Carole Wentz, who runs Merrill Lynch’s Greater Orange County Complex.
“We talk about areas that matter to clients,” she said. “The seminars cause thought-provoking questions, and clients want to go talk to their advisers. Our advisers clamor for the seminars.”
William O’Connor began Applied Financial Planning in 1986 in Irvine, offering services through publicly traded LPL Financial.
In the early 2000s, the company began advertising on radio, often spending about $10,000 to $15,000 a month. O’Connor gauges success “if the phone rings” after an advertisement.
About a decade ago, Frank Pastore, once one of the nation’s most prominent Christian radio talk show hosts, gave them the nickname, “Money Guys,” which O’Connor says he’s turned into a copyright. Besides O’Connor and Walker, the others are Robert Micone, Marcelo Bernardo and Andrea Graham.
They often appear on the nationally syndicated radio show of Hugh Hewitt, who has about 2.3 million weekly listeners. They are careful to avoid mentioning their past returns or forecasts.
“You cannot say that you beat the S&P by a bazillion points,” Micone said. “Those who do it are breaking the regs.”
The Money Guys decided to pay for a half-hour show to see how it works compared to regular advertising. Their new program must have its theme pre-approved by an LPL compliance officer; if the Money Guys want to put the show on the company website, a compliance officer must approve it word by word.
With a target audience of coastal Orange County, the taped show airs each Saturday at 9 a.m. on 101.5 FM, KOCI, a low-power radio station based in Costa Mesa.
The company receives additional marketing when the radio station promotes the show throughout the week.
An added bonus is that their clients like to hear them on the radio, Micone said.
“It was a situation where so many people asked us if we would do a show,” Micone said. “Our clients get excited when they hear us.”
