Member Insights - Put Clients First

An Interview with NEB Member Michael “Cy” Cajthaml

Ethics is fundamental to Michael “Cy” Cajthaml, CFP, CSA, President of McHenry County Investment Services, Inc., in McHenry, Illinois. But don’t mistake him for a “holier than thou” kind of guy.  Yes, he believes in doing what’s right for his clients. But he also believes it’s the best growth strategy for his business, a wholly owned subsidiary of McHenry Savings Bank.

“I was taught the average client will buy from you seven times over your career,” he says. “That’s based on me doing the right thing. I don’t expect heat from the stove until I put the wood in first.” Put another way, Cy knows he has to help his clients achieve their dreams in order to deserve his rewards. But if he does, they will buy from him many times—and give great referrals.

“People sense I’m interested in their well being, dreams, and goals,” he says. “Then they see I’m a member of NEB and follow the CFP Code of Ethics."

Cy believes in communicating his NEB affiliation. He displays his NEB plaque prominently on the table where he meets with clients, along with a stack of his NEB business cards. He also has the NEB Professional Profile available in his waiting area, printed in color.

“Many people will ask about NEB.” Cy says. “I love that because it lets me compare myself with other less scrupulous competitors. But the biggest benefit of NEB membership is that it opens up conversations with clients about your approach. You can explain you’re not just selling a product and moving on to the next person.”

Once clients learn more about Cy, they notice his deep insurance and investment knowledge, amassed over a 20-year career advising clients about life insurance, annuities, P/C insurance, and investments, in big cities and small towns.

Structured as a wholly owned entity of McHenry Savings Bank, McHenry County Investment Services provides a suite of financial planning services to bank clientele and the general public. Cy focuses on retirement planning and income planning. His clients are usually in their mid- to late 50s, either preparing for retirement or in full-blown retirement.

“Most people come to me for help positioning their wealth, keeping it safe, and earning a better than average rate of return,” Cy explains. He uses the SWAN^SM technique, which stands for “Sleep Well at Night,” a slogan he feels so strongly about he had it service marked. His goal: to make financial and investment planning simple, easy, and comfortable.

Cy stresses his objectivity so clients feel at ease. Although he’s an investment advisor representative, he doesn’t charge fees for providing investment advice. This helps him avoid potential conflicts of interest. “Everything I do for clients is free. I get paid a salary and the bank gets compensated through product sales. This helps me design programs that truly fit client needs, with no ulterior motives.”

“I’m working with people’s entire life savings,” adds Cy. “I have a lot of respect for that.” And he has a lot of respect for his clients personally, who tend to be down–home folks looking for a trusted advisor, not a slick downtown broker. His clients typically are blue collar, with a sprinkling of horse farm owners, professional pilots, and “millionaires next door” thrown in for good measure. With 26,000 residents, McHenry is located between Milwaukee and Chicago.

When Cy joined the bank nine years ago, he “found his home” and has been there ever since.

Cy got started in business a little earlier than most NEB members. While a senior in high school, he started a business doing commercial art (pinstriping and lettering). But this was no small-time student gig. Cy made $20,000 at it that year. After high school, he continued as a full-time commercial artist, stayed in the field for 14 years.  But then fate intervened. He contracted chemical poisoning from the solvents he worked with. His doctor ordered him to find another line of work.

“I didn’t know what to do,” Cy explains. “At the time, my investment representative worked for Transamerica. He invited me to go meet with his boss in the agency, Burt Herman.  Burt ran the Chicago branch of Transamerica. We hit it off, and I decided to enter the securities and life insurance business. He taught me everything and really set the pace for me. I consider Burt my mentor and have a lot of respect for him.”

Although Cy mainly sold life insurance and investments, his initial clientele kept pushing him for advice managing their property-casualty risks. So Cy decided to bone up on those coverages and ended up leaving Transamerica for a P/C agency in Waukegan, Illinois.  After that he joined another P/C agency in the “Loop” area of downtown Chicago, before deciding to give up P/C and focus on financial planning. He jumped to a small-town, family-friendly environment, mainly to spend more time with his family (wife, Debbie and son, Mike, Jr.).

The rest, as they say, is his story.

Today, Cy is a respected member of a small-town community.  He’s a “hands-on” Dad to his son. He’s helped hundreds of his neighbors achieve their financial goals. He’s been quoted in the Wall Street Journal, National Underwriter, and other publications. And he’s been named to the agent advisory boards of both Lincoln Financial and Creative Marketing International Corporation.

How are you maximizing your NEB membership to grow your business? Would you like to be featured in our newsletter? The National Ethics Bureau welcomes your input. Send your comments to: hlew@ethicscheck.com