“Introduction to Fiducial Financial Services” by jianghongl

VIEWS: 8 PAGES: 80

									2004 Convention                            Baltimore
    May 24 – 29, 2004




             THE FIDUCIAL FINANCIAL
            SERVICES PROFIT CENTER
              Making it Work For You




                        www.fiducial.com
    Overview




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    Objective
     • Review your concerns
     • Introduce you to Fiducial Financial
       Services
     • Introduce our broker/dealer
     • Review how to get started
     • Answer your questions




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    Your Desires as a Franchisee are to…
     • Provide better and additional
       customer service to clients
     • Protect your client base
     • Increase client loyalty
     • And to do all this with:
       – Proven marketing systems
       – Easy to follow sales systems
We are here today to discuss the first steps to take.


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    Fundamental Truths About Financial Services

          • Offering Financial Services is:
             – 80% relationship
             – 15% understanding the markets
             – 5% product knowledge
             − People want someone they can trust
             – People want someone who will listen
             − People want someone to direct them towards
               solving their financial issues
             – They want someone to tell them what to do

          • That’s you! You already do this!




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    State of Accounting Today




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    State of Accounting Today
     • Accountants are getting squeezed
     • Tax preparation and/or write-up is still
       viable, but not the growth business it
       was 15 years ago
     • Cheap computers and software create
       the self-helpers
     • Tax changes have also complicated
       compliance


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    State of Accounting Today
     • Compliance and malpractice costs have
       gone up
     • Write-up work is becoming more
       competitive
        − Some so called accountants will
          charge $75 for a $250 month job
     • How do you make more money?
     • What are your choices?


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    What are Your Choices?
     • Market more to increase or maintain
       your client base
     • Charge larger fees
        – Means you better have
          confidence in services
     • Diversify your practice and add
       additional profit centers



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     What Services Can You Offer?

          Here are the Fiducial Profit Centers:
          • Business Counseling
          • Accounting and Financial
            Management
          • Payroll Services
          • Tax Services
          • Financial Services


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     A Natural Extension…
      • You have an intimate knowledge of
        your client’s business
      • You almost always know their
        financial situation
      • You already know where their money
        is




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     A Natural Extension…
      • Why not extend that knowledge to a
        client’s whole situation and offer
        Financial Services?
      • Will make for a stronger practice
      • Will increase client loyalty
      • Will give you a bigger return on the
        time spent



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     A Natural Extension…




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     A Natural Extension…

          • Should you make Financial Services
            a natural extension of your practice?
          • Let’s do a quick poll!
          • If you answer ―yes” to the majority
            of the following questions, then you
            just may have your answer



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     Audience Poll

          • How many of you have clients who are
            fed up with their financial planners,
            insurance agents & brokers?
          • How many of you have clients who have
            asked you what they should do with their:
             − Lump-sum pension distributions?
             – Money market account?
             − Certificate of Deposit?
             – Or IRAs?


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     Audience Poll

          • How many of you have clients who aren’t
            saving enough for their retirement?
          • How many of you counsel your clients on
            how to reduce taxes in any given year…
            and…
          • The next year you are having the same
            conversation all over again?




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     Audience Poll

          • How many of you have clients who
            are asking for referrals to brokers,
            planners or insurance agents?
          • …Then, they want your advice on the
            recommendations they get?




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     Audience Poll

          Last poll question:
          • How many of you have clients with
            investable dollars of $25,000 or
            more?
          • $50,000?
          • $100,000?
          • Or more?


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     Would You Believe Me?

         • What if I told you a $100,000 CD
           could earn you $3,000 with minimal
           effort?
         • What if I told you that could be as
           high as $5,100 depending upon
           your production level?
         • What if I told you that all you need is
           a system and the structure in place
           to make it happen?
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     Financial Services, You, and Your Clients…

           • So, if you answered yes…
           • Then you can make a difference with
             the Fiducial Financial Services profit
             center
           • Don’t let your clients go somewhere
             else




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     What is Holding You Back?




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     What’s Holding You Back?
      • From expanding in this exciting profit
        center?
         − You don’t want to work any harder?
         – You don’t believe Financial
           Services will increase loyalty?




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     What’s Holding You Back?

          • Afraid you might
            make a mistake?
            − And then what
               happens?




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     What’s Holding You Back?

          • Added liability
            and costs?




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     What’s Holding You Back?

          • Conflicts of interest?
          • Commission conflicts?
          • Pride?
            − Maybe there are some things you
               don’t know much about?




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     What’s Holding You Back?

          •   Only believe in ―no-load‖ funds?
          •   How do you integrate into practice?
          •   How do you get started?
          •   What if you don’t pass your exams?
          •   How much time will that take?




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     Answers to Questions




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     My Basic Premise
      • Your clients are
       someone else’s
         prospects!




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     Increase Client Loyalty?
      • How about
        Financial
        Planners?
      • This is the cover
        of a prominent
        trade journal
      • Top Story?




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     Increase Client Loyalty?

          • Why Financial Planners?
            - They are taking your clients
            - Tax Prep feeds financial services
            - It prevents the client from going to
               someone like you
            - It increases their client retention


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     Increase Client Loyalty?

          • But, if you provide Financial Service
            – It keeps the client tied to your
              practice
            − Our reps tell us it solidifies trust
            – Triple Check’s persistency rates were
              highest in offices with Financial
              Services




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     Afraid of Making a Mistake?

          • What kind of
            mistake instills
            that fear?
          • Have you lost
            clients because
            of mistakes?




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     Afraid of Making a Mistake?

          • What’s there to prevent you from
            making more mistakes in the
            future?
          • Systems!
          • And we have the systems for
            Financial Services at Fiducial




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     What is Holding You Back?




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     Fear of Losing Clients?

          • One thing I’ve come
            to know about most
            accountants…
          • Most of you place
            ethics and personal
            integrity above
            everything else



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     Fear of Losing Clients?

          • You would never intentionally lie to a
            client
          • Your client’s interests always come first
          • Bad judgment? That’s a possibility
          • What could prevent poor, or bad
            judgment?
                           Systems!



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     Added Liability & Costs?

          • There are some, but they are minimal
          • Most liability should be covered by our
            broker/dealer’s E & O insurance
          • Costs:
             − About $500 - $750 to get licensed
             − About $1800 a year for E & O and
               broker/dealer costs




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     Commission vs. Fee Conflict

          • Don’t let this be a
            fight about doing
            Financial Services
            vs. not doing
            Financial Services

          • Let it be a fight about
            commissions vs. fees




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     Commission Conflicts

          • If commissions are a concern:
            − Become an RIA and
            − Charge a fee for assets under
              management




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     Only Believe in ―No-Loads?‖

          • Your clients should pay you for your
            expertise If…
             − They want professional help
             − They want the services you can
               provide




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     Only Believe in ―No-Loads?‖

          • During a recent six-year period:
            − The average ―no-load‖ investor
              missed 83% of the return available
            − The average growth fund gained
              12%
            − The ―no-load‖ investor – 2%




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     Don’t Know What Investors Want? They Want an Experienced Financial Advisor


       In a recent survey, 58% said they were likely to seek financial advice
       from an experienced broker or financial advisor.



               70%
                                   58%
               60%
               50%                                                                         Agree
               40%
                                                                                           Neutral
               30%                                                    24%
                                                     18%
               20%                                                                         Disagree
               10%
                 0%
       Source: Plan It Marketing Intelligence, Inc. survey of 400 financial decision makers ages 30 - 65
       (50% male, 50% female), with household incomes of $50,000 and above who own at least two
       insurance and/or investment products.
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     Investors Want Experienced Financial Advice

           • If you’ve been in tax and/or accounting for
             more than 3 years…you’re experienced
               − You know more about income & capital gains
                 taxes than most advisors
               − You’ve seen more statements than most
                 advisors
               − You certainly know what your clients want
                 better than other advisors




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     How to Integrate into Practice

          •   How do you help your clients?
          •   How do you start?
          •   What do you do first?
          •   The Fiducial Financial Services
              System
               − At Fiducial we’ll walk you through
                 the steps


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     Meet Fiducial Financial Services




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     Randy Berry
     • Fiducial for 9 years – Regional Sales Manager
       for the West
     • Series 7, 24 & 63; Life, Heath & Property Casualty
     • Ten Years with IDS American Express
        – Financial Planner
        – Regional Manager IDS Property/Casualty
     • Twenty-two years with Auto Club of So. California
        – Regional Sales Manager
        – District Manager




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     Lonna Weems
     OSJ/OPERATIONS Manager
     • Fiducial for 4 years
     • Series 7, 24, 63, 66 & 51
     • Three years as Assistant to Branch Mgr.
       Raymond James
     • Five years as Director Denver Child Care
       facility




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     Jenifer Shimpach
      Brokerage Accounts
      • Fiducial for 3 years
      • Series 7, 63, 24
      • Handling Brokerage since Rosario left
      • Worked every position in department




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     Pamela Rowe
     Registered Principal – Non-Brokerage
     • Fiducial & Triple Check for 10 years
     • Handles Non-Brokerage accounts
     • Processes Rejected Documents




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     Meet National Planning Corp (NPC) Our Broker/Dealer




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     NPC — Our Broker/Dealer
     •   National Planning Corporation (NPC)
     •   Broker/Dealer based in Santa Monica, CA
     •   Over 1,100 Registered Representatives
     •   Subsidiary of Jackson National Life,
         Lansing, MI, one of the nation’s leading
         providers of annuities and insurance
         products




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     NPC — Our Broker/Dealer
     • Part of the $45 billion JNL corporate family,
       providing NPC with commitment, stability,
       capital and technological resources
     • JNL owned by Prudential PLC, London,
       England, one of the world’s largest
       insurance companies
     • Established relationships with accounting
       and tax professionals




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     Support Systems




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     Basic Training System
      • Consists of:
        − Manual
        − Video Tapes
      • Designed as Basic Training System




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     Basic Training System
      • Objective: Get newly licensed reps
        productive in a short period of time
      • Can be used as refresher course for
        veterans
      • Great tool for office owners wanting to
        license other staff members in office




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     Basic Training Manual

          Manual topics include:
             •   Financial Planning 101
             •   Asset Allocation & Mutual Funds
             •   Dollar Cost Averaging
             •   Practice Management
             •   Sales Practices & Ideas
             •   Opportunities in the Tax Return
             •   Training Clients to Become Referral Sources
             •   And more…

            We will consider holding classes if the demand is
            large enough.


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     Policies & Procedures Guide
      • Policies, Procedures & Practice Management
        Guide
         – Designed to give you the tools you need
           such as:
            • Setting up a compliant office
            • Working effectively with clients
            • How to process business & complete
              forms
            • Practice Management & Marketing Tips




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     Practice Management Tips
           • Marketing tips include:
             − Monthly and quarterly communications
             − Quarterly seminars
             − Direct mail
             − Information request post cards
             − Referral post card system
             − Thanks-a-million cards
             − Silent salesman
             − E-mail, brochures

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     Referrals
        We help you
      train your clients
         to give you
           referrals




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     Referrals

        1993 AARP
          Survey




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     How People Select A Professional Advisor

                                                                   Friends
     40%                                                            37.6%

     35%
               Referrals
              Account For
     30%
                                                          Family
                 77.4%                           Other    22.5%
     25%                                       Advisors
                                                 17.3%
     20%                                Seminars
                                         13.2%
     15%
                                 Articles
     10%           Direct         5.6%
           Cold             Ads
           Calls    Mail    2.4%
     5%    0.4%    1.0%
     0%
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     Offering Services

          Schedule an Office Visit to:
            • Walk you through the Policies,
              Procedures & Practice
              Management Guide
            • Help you set up a compliant office
            • Initial Training on Worksheet
              System
            • Get you started on product
              knowledge


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     Offering Services
      We can help you with:
       • Product selection
       • Financial plans
       • Client conference calls
       • Client seminars
       • And more…




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     Worksheet System

           • Proprietary Worksheet System
              helps you to:
           • Create an additional profit center
           • Build upon the relationship with your
             clients
           • Create client confidence in you
           • Start producing right away




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     Worksheet System
     Based on following premise:
       People are more concerned about
       not losing their money than they are
       about making a lot of money
     • The Worksheet portfolios provide
       downside protection
     • They protect your clients in highly
       volatile markets


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     Worksheet System
     Guides You Every Step Of The Way…
       • A structured Financial Services Interview
       • Asking the right questions
       • Gathering appropriate data
       • Develop Client Risk Profile
       • Recommending appropriate products
       • Uses the Financial Planning Process




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     The Financial Planning Process


                                 Develop Financial Plan
     Identify &
                     Gather                               Strategy    Take
     Prioritize
                  Information                             Session    Action
     Objectives                   Analyze     Evaluate
                                Information   Solutions




                                        Review
                                         Your
                                       Progress




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     Worksheet System
     • A mature practice will generate a
       minimum of $50,000 in Financial
       Services. Some generate $20,000,
       others $200,000
     • Depends on the commitment of the
       owner; willingness to put the time in it;
       your drive; and if you are willing to use
       the systems




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     Worksheet System
     If you are already licensed, the System:
         • Increases confidence
         • Generates more sales
         • Generates larger sales
         • Generates more referrals




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     Commissions & Fees




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     Commissions & Fees
     • We have four different commission
       schedules or ―grids‖
     • Also known as ―payouts‖
     • See ―An Introduction to Fiducial
       Financial Services‖




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     Commissions & Fees
     • All commissions are split between
       NPC, Fiducial and you
     • Based on Gross Dealer
       Concessions (GDC)
       – Amount paid by investment
         companies to your Broker/Dealer




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     Commissions & Fees

         • Here is an example…
           – You are at 70% payout and a client
              invests $10,000
           – Assume a 4% GDC ($400 paid to NPC)
              • NPC keeps 5% or $20
              • Fiducial receives 25% or $100
           – You receive 70% or $280




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     Do You Want To Know More?
     • ―Introduction to Fiducial Financial
       Services‖
     • It has more information on:
        – Licensing and costs involved
        – Types of licenses
        – License testing process




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     Do You Want To Know More?
      •   Offering our services
      •   Support systems
      •   Commissions and Fees
      •   NPC
      •   Forms you need to get started




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     Summary…
     • Your clients have financial concerns…
     • As a Representative,
        – Your job is to help them find solutions
           to those concerns
        – Your job is to help them make more
           intelligent decisions about their money
     • Remember…Financial Services is nothing
       more than an extension of your consulting
       role




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     Summary…
     The K.I.S.S. principle is more important today than
     it ever was
         – As you counsel your clients, don’t show them
             how much you know…
             • Show them how much you care

           • Encourage them to reach their goals

           • Show them the path…

        – With the Fiducial Financial Services System




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     Contact Information
          •   Lonna Weems
              (800) 525-2939
              lonna.weems@fiducial.com

          •   Jenifer Shimpach
              (800) 525-2939
              jenifer.shimpach@fiducial.com

          •   Pamela Rowe
              (800) 525-2939
              pamela.rowe@fiducial.com
          •   Hovick Babajanian
              (800) 525-2939
              hovick.babajanian@fiducial.com




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     Questions




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     Thank You!




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