Growing Your Practice

Transcription

1 Growing Your Practice Presented by: Ted R. Ridlehuber President and CEO Cannon Financial Institute, Inc.

2 Create Your Blueprint To Grow Your Business 1. Work Your Current Clients 2. Attract New Clients

3 Work Your Current Clients 1. Retain Current Client Relationships 2. Expand Current Client Relationships

4 Work Your Book 1. Retain Current Client Relationships i. Define Your Client Experience Absolutes Touch Points ii. iii. Establish Communication Plans for Each Client Regularity of Face-To-Face Meetings Types of Other Contact Create A Special Events Plan Individual Group

5 Work Your Book 2. Expand Current Client Relationships i. Gain Additional Insight Into Your Clients Current Situations, Futures, Feelings and Family Dynamics Annually ii. Introduce the 13 Wealth Management Issues To Your Top Clients

6 Attract New Clients 1. Create Opportunities 2. Capitalize on Opportunities

7 Attract New Clients 1. Create Opportunities i. Identify The Profile Of The Client You Serve Best ii. Create Your 4-Point Branding Message iii. Refine Your Prospecting Plan

8 Attract New Clients 2. Capitalize On Opportunities i. Disciplined Interview Process To Gain Insight And Identify GAPs ii. GAP Analysis iii. Pre-Planned Disciplined Presentations

9 The Branding Message A Branding Message is used to describe how you uniquely serve clients. The message must show how your service is distinguishable from your clients other alternatives.

10 The Branding Message There are 4-Points For The Branding Message 1. How You Uniquely Serve Your Clients 2. How You Are Able To Provide This Level Of Service 3. The Vast Resources Of Your Firm That Support You Providing This Level Of Service 4. How You Deliver This Service Locally In A Highly Personalized Way

11 The 4-Point Branding Message 1. How You Uniquely Serve Your Clients I work comprehensively with my clients wealth management plans.

12 The 4-Point Branding Message 2. How You Are Able To Provide This Level Of Service I utilize a disciplined approach with this document that lists the 13 Wealth Management Issues that our research shows are important for my clients to address. [Show the 13 Wealth Management Issues Document]

13 The 4-Point Branding Message What Is A Wealth Management Plan? 1. Insurance 2. Investments 3. Liabilities 4. Qualified Retirement Plan / IRA Distribution Plan 5. Stock Options 6. Business Succession 7. Durable Power Of Attorney 8. Gifting During Life 9. Charitable Gifting During Life 10. Titling of Assets 11. Who Your Executor / Trustee Is 12. Distribution Of Wealth At Death 13. Charitable Inclinations

14 Insurance Nucleus / Center Cell Most Loyal Relationship Charitable Inclinations at Death Investments Liabilities Qualified Retirement Plan / IRA Stock Options Gifting During Life Distribution Plan for Spouse / Descendents at Death Choice of Executor / Trustee Titling of Assets Charitable Gifting During Life Business Succession Plan Durable Power of Attorney

15 The 13 Wealth Management Issues Spreadsheet Client Name: Issue Date Discussed Action Plan Date Accomplished 1) Insurance Issues 2) Investment Issues 3) Liabilities Issues 4) Qualified Retirement Plan/IRA Issues 5) Stock Option Issues 6) Business Succession Plan Issues 7) Durable Power of Attorney Issues 8) Gifting to Children/ Descendent Issues 9) Charitable Gifting during Life Issues 10) Titling of Assets Issues 11) Executor/Trustee Issues 12) Distribution of Wealth at Death Issues 13) Charitable Inclinations at Death Issues

16 The 4-Point Branding Message 3. The Vast Resources You Have Available To You That Support You Providing This Level Of Service I am supported by the vast resources of North American Company that allow me to provide this high level of service. [Give 3 Examples]

17 The 4-Point Branding Message 4. How You Deliver This Service Locally In A Highly Personalized Way I deliver this here in Las Vegas in a highly personalized way. Present The Client Experience Absolutes You and Your Team - Discuss 2 or 3 things that your clients have told you they value most about your service.

18 Life Insurance Issues and Uses

19 Simple Question: When was the last time you and your spouse had an efficiency study done on your life insurance policies?

20 1035 Exchange Ask your current clients to allow you to analyze their present policies to determine if you can provide: 1. Additional benefits for the same premium, or 2. Same benefits for a lower premium 1035 Exchange - Tax rule allowing one (or multiple) cash value life policies to be exchanged for another without recognition of income on the cash value.

21 Common Uses of Life Insurance Liquidity To Pay Estate Taxes with Tax- Exclusive Dollars Business Succession - Fund Buy-Sell Agreement IRA Exchange Opportunities Key Person Insurance

22 Liquidity To Pay Estate Taxes With Tax Exclusive Dollars Payment of Estate and Inheritance Taxes These taxes are generally payable within a year of death Irrevocable Life Insurance Trusts, when administered correctly, are often used to assure that life insurance is excluded from the insured s estate and not subject to estate taxes Funds paid to the trust can ultimately be used to provide liquidity for payment of estate taxes with taxexclusive dollars

23 Business Succession Fund Buy- Sell Agreement Funding a Buy-Sell Agreement to sell a business to key executives, employees or outside parties If a business owner chooses to structure a buysell agreement to facilitate a transfer of the business at his or her death, the plan should likely be funded with life insurance

24 IRA Exchange Opportunities In many instances, clients have accumulated large IRA balances and the dollars inside these accounts could be best used to pass wealth to future generations. By taking systematic distributions of these dollars over a period of time and funding the net after tax proceeds into an estate tax savvy vehicle, the client may be able to secure a significant estate benefit to his/her heirs.

25 IRA $3MM Client Created a 10-Year Distribution Plan for IRA Assets and Used Net After Tax Proceeds to Pay Premiums for a $7MM, Joint Second to Die Policy To Be Paid In Full After 10 Years Net After Tax Proceeds IRA Exchange Opportunity Trust $7MM Policy Purchased By an Irrevocable Life Insurance Trust with Crummey Powers IRS At Death of Second Spouse, $7MM Passes as Tax- Exclusive Dollars to Heirs

26 Key Person Insurance The financial viability of many businesses depends on the revenue generated by certain key personnel. Should a key executive or partner who brings in a high portion of revenue suddenly die, the business is faced with two immediate issues: 1. One is replacing the key executive. 2. Covering the revenue shortfall resulting from the key executive s death. Many businesses/firms choose to buy life insurance policies payable to the business to cover the financial expenses and revenue shortfalls that would occur following the death of a key employee.

27 Key Person Insurance Key person life insurance has other important uses. The policy cash value can be used to provide retirement benefits to the key employee. The policy death benefits can be used to pay corporate alternative minimum taxes attributable to the policy. Most policies have an exchange provision that allows the company to substitute a new key employee under the original policy without payment of income tax on the gain on the policy.

28 Blueprint to Grow Your Business 1. Work Your Book A. Retain i. Client Experience ii. iii. B. Expand Communication Plans Special Events Plan i. Gain Additional Insight ii. Introduce the 13 Wealth Management Issues 2. Attract New Clients A. Create Opportunities i. The Profile Of The Client ii. iii. You Serve Best The 4-Point Branding Message Prospecting Plan B. Capitalize On Opportunities i. Interviews ii. GAP Analysis iii. Presentations

29 Remember: Not Same Old Process If You Are Not Changing, You Will Not Survive