In The News: A Ten Step Route to Financial PlanningFinancial Advisor Magazine, February 2004. By Raymond Fazzi. Clients can use Paul Lemon’s book to map
out a financial plan. It wasn’t long into his career as a financial
planner that Paul Lemon noticed a disturbing trend among his clients.
He calls it the “dance of suffering.” The typical way it would go is a client would pay him
$5,000 to put together a financial plan, structure a portfolio and
generally grease the skids for retirement. That part would go well
enough. But after the work was done, and the client’s
course set, Lemon was often dismayed to find that the plan he labored
on had done nothing to change his clients’ lives. They still
worried about money. It could still cause them distress. For many
clients, money was more of a burden than a resource. “Some of my most miserable clients had just inherited
over $20 million,” he says. “The problem is they were
in bondage to their money because they couldn’t tell anybody.
They led secret lives.” For Lemon, a CPA who sold his tax practice five years
ago to become a fee-only CFP practitioner, the realization of how
his clients related to money became yet another turning point in his
career. “I thought there surely had to be a better way to do this,” he says. On a basic level, Lemon became a so-called “life
planner,” a philosophy based on the principle that planners
should be focused on helping their clients establish and work towards
their life goals. Money remains integral, but as a means to an end,
rather than the driving focus. Now, instead of just collecting a client’s
financial data, he spends ample time discussing their goals, aspirations
and dreams. For Lemon, however, it didn’t end there. He spent the next three years producing a book that
he feels captures both the spiritual and practical aspects of financial
planning in a ten-week program that clients can undertake with or
without the assistance of a professional planner. The book, Ten Weeks To Financial Awakening,
isn’t a typical do-it-yourself book. It consists of 705 pages
and is almost two inches thick—textbook-like heft that could
be intimidating to the casual reader. Among the weekly topics covered by the book are how
to set up a budget, take stock of credit cards and debt, set up investments,
decide on insurance and estate planning. Along the way, Lemon intermingles
poetry, quotes and anecdotes with financial charts, questionnaires
and worksheets. The book itself is stuffed with worksheets, checklists,
illustrations, essays by Lemon on subjects stretching from the philosophical
to the meticulously financial and numerous quotations. Also included
are four CDs, which provides readers with video and audio presentations
by Lemon that take the reader through each step of the program, which
requires the use of Quicken software. It was a project that consumed much of Lemon’s
life during the past three years. Aside from the hours spent working
on it, Lemon spent $300,000 of his personal funds to publish it. That
included hiring contractors to illustrate it, lay it out and produce
it. He also hired a writing coach, and paid $50,000 for the rights
to use screenshots of Quicken software in the book. He estimates that
he rewrote the volume about 20 times. Even after all that, Lemon is not counting on it being
a best seller. The book is self-published, so it is not widely available
in bookstores. He advertises on Quicken’s Web site, but most
sales have come through his own site, at www.tenweeks.com. He’s
sold about 300 books thus far, at a price of $79. “It’s not one of those books you can sell
at an airport that flies off the shelf,” he says. “I’ve
surrendered to the fact that it may not sell. But I know what I did
is the best that could be done.” Lemon says his goal was to provide people with a way
to become active participants in their financial planning, whether
or not they have a professional helping them along the way. In the
process, he hopes the book will provide a roadmap for those who can’t
afford a planner themselves. Lemon says the book partly grew out of his concern that
clients are too detached from the process used to plan out their financial
futures. Lemon says he too often felt like a doctor filling out a
prescription, telling his patients to take a pill a day. “Clients come to us and we give them a plan. But
the plan is really kind of our plan,” he says. “We then
give it to them in a nice binder and say, ‘OK, now you’re
all better.’ But they’re not involved in the emotional
nitty gritty of putting it together, so they don’t have ownership.” Among the first to go through the program were Brian
and Kathy Derry, a couple in Bayfield, Colo., who began seeking out
a financial planner after Brian retired from his manufacturing management
job in 2002. They volunteered to be among the first to use the program
after contacting Lemon during their search. They completed the program at the end of last year.
It took them about six months, and they estimate about 100 hours,
to get through the book. They also had several meetings with Lemon
along the way. “This is a comprehensive program that allows us
to know where we stand,” Kathy Derry says. “This really
felt very much like going back to night school for a three or four
semester class. It was that level of work activity.” Among the changes the Derry’s made by the time
they were done was the reconfiguration of their portfolio from one
chiefly made up of single stocks to one with a mix of stocks, index
funds and bonds. They set up a family budget that they review monthly.
They also decided to pay off their mortgage. “One of the things
the book encouraged us to look at was risk versus return,” Brian
Derry says, adding that getting rid of the mortgage was a “zero-risk”
way of increasing monthly income. Susan Bradley, a partner at Bradley and Young Wealth
Management in West Palm Beach, Fla., recently began reviewing the
book with an eye toward using it with her own clients. Bradley, founder of the Sudden Money Institute, an educational
center for new money recipients, says that the book is a way to establish
some form of accountability for clients. Bradley, an author herself who wrote Sudden Money in
2000, wasn’t surprised by the amount of money and resources
Lemon put into his book. “I think he was coming from a very deep belief
and passion around this,” she says. “Paul’s a CPA
and a planner, so he’s not a foreigner to money at all. He’s
also a very thoughtful man, and couldn’t have put this together
if he wasn’t.” One question advisors have to ask, however, is whether
their clients will be dedicated enough to do the work. “I don’t think all my clients need it, certainly,
because we’ve done a lot of work with them already,” she
says. “Some people may have the patience. Some people may never
complete it, but still get a lot from it.” Lemon says he has a range of ways of using the book.
For clients whose assets don’t merit them paying Lemon’s
fees, he will suggest the book as a way to fill their needs. Lemon
may hold a meeting with such clients to review the final results.
For clients who still want to retain Lemon’s services, yet use
the book, he charges an hourly fee instead of an annual retainer fee. In selling the book directly to advisors, Lemon is offering
a program called Ten Weeks Advisor, which offers networking, referrals
and educational materials for advisors who want to use the book as
part of their practice. Lemon has yet to sign anyone up for the program,
which has annual fees starting at $500. “It’s a way, especially for new advisors, to build their practices,” he says. “It gives you the ability to open the door to different kinds of clients.” |