Member of the Month - A Passion for Safety

Larry Rubenstein doesn’t help clients get rich. He makes sure they don’t get poor. And if anything or anyone gets in his way, watch out!

Problem is, boomers and seniors these days are running an obstacle course on their journey to a financially secure retirement.

First, they encounter financial professionals who misrepresent their products. Rubenstein tells of one recent client whose former broker had insisted that his variable annuity was the same as a fixed annuity (not!).

Then they do business with advisors who graduated from the “oh, by the way” school of disclosure, failing to mention annuity surrender fees until after they close a sale, even with elderly clients.

Then they fall into the clutches of people who just care about earning commissions, not recommending suitable products.

“It’s just wrong.”

Throw in market cycles that nibble, if not devour, equity account values, and it’s a wonder anyone retires with a nest egg anymore. That doesn’t just annoy Rubenstein, it makes him livid.

“I had a guy come in recently,” Rubenstein says. “He was 66 years old and had $300,000. I told him he had done a decent job investing and that if we worked his portfolio right, he should be OK in retirement. The guy looked at me and admitted his portfolio used to be double in size. I got really angry hearing that. It’s just wrong.”

Rubenstein is doing his best to do what’s right in his own practice, L.E.R. Financial Services, based in Bradenton, Florida. His company’s mission is never to lose money for a client. “I get clients calling in when the market tanks, thanking me because they didn’t lose any money,” Rubenstein says.

Then again, “not losing money” has been a way of life for Rubenstein. After attending Penn State where he studied business and finance and graduated with a degree in business administration, he worked in sales for an addressing machine company. He eventually worked his way into management and then became CFO of several companies, spending 35 weeks a year on the road.

In 1999, Rubenstein, the road warrior, retired, but quickly get bored. Searching for something else to do, he realized he always liked financial planning and he decided to open up a retirement planning business in Florida.

From the beginning, he focused on the boomer and senior markets, helping clients to prepare for retirement without—no surprise here—losing money. He became a licensed investment advisor, charging fees for planning work and securities (through Charles Schwab) and commissions for insurance products.

Like many other firms in his niche, he acquires new clients by giving seminars and then following up with office meetings, before developing a written retirement plan. Affiliated with Rubenstein are en elder-law attorney and a CPA, who handle projects beyond his scope.

High Standards

Regardless of client need or product or service recommended, Rubenstein adheres to high standards of ethics. For him, being ethical means three things: full disclosure, recommending the right products for the right need, and being totally honest.

Disclosure of his investment approach occurs in the first client meeting. Rubenstein says, “I present people with a choice right off the bat. I ask them if they’d prefer the investment in my left hand that pays 20 percent, which they might lose, or the one in my right hand that pays 6 percent, which they can’t lose. If they prefer the 20 percent investment, I tell them that’s not what they’ll get with us and send them elsewhere.”

Regarding honesty, Rubenstein is up front with clients about the limits of his memory. “As I get older,” he tells them, “I might have trouble remembering what I said. So I’m going to tell you the truth so I never have to worry about it.”

Pulling his tongue out of his cheek, he adds, “If you have the knowledge and you tell the truth, you will do right by the client.”

A member of the National Ethics Bureau since 2005, Rubenstein admits being impressed by NEB’s efforts to clean up the industry. “I really appreciate that,” he says.

Today, he uses his NEB membership to build his reputation and to encourage trust. He includes the NEB logo on his workshop invitations and provides the NEB member brochure in every packet of information he sends to clients.  “We invite potential clients to check us out and when they do, we come out smelling like a rose.”

But that is no accident. It comes from Rubenstein’s passion for doing what’s right. “When I take on clients,” he explains, “they become part of the family. And that means making sure they don’t outlive their money.”

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