Growing Your Practice
Presented by:
Ted R. Ridlehuber President and CEO
Cannon Financial Institute, Inc. [email protected]
Create Your “Blueprint” To Grow
Your Business
1. Work Your Current Clients
2. Attract New Clients
Work Your Current Clients
1. Retain Current Client Relationships
2. Expand Current Client Relationships
Work Your Book
1.
Retain Current Client Relationships
i. Define Your Client Experience
– Absolutes – Touch Points
ii. Establish Communication Plans for Each Client
– Regularity of Face-To-Face Meetings – Types of Other Contact
iii. Create A Special Events Plan
– Individual – Group
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
Attract New Clients
1. Create Opportunities
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
Attract New Clients
2. Capitalize On Opportunities
i. Disciplined Interview Process To Gain
Insight And Identify GAPs
ii. GAP Analysis
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
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
The 4-Point Branding Message
“I work comprehensively with my clients’
wealth management plans.”
The 4-Point Branding Message
“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]
2. How You Are Able To Provide This
Level Of Service
The 4-Point Branding Message
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
Insurance
Investments
Liabilities
Qualified Retirement
Plan / IRA
Stock Options
Business Succession Plan
Durable Power of Attorney
Gifting During Life
Charitable Gifting During Life Titling of Assets Choice of Executor / Trustee Distribution Plan for Spouse
/ Descendents at Death Charitable
Inclinations at Death Nucleus / Center
Cell – Most Loyal Relationship
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
The 4-Point Branding Message
“I am supported by the vast resources of North American Company that allow me to provide this high level of
service.”
[Give 3 Examples]
3. The Vast Resources You Have Available
To You That Support You Providing This
The 4-Point Branding Message
“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.
4. How You Deliver This Service Locally In A
Highly Personalized Way
Simple Question:
When was the last time you and your spouse had an efficiency study done on your life insurance policies?
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.
Common Uses of Life Insurance
•
Liquidity To Pay Estate Taxes with
Tax-Exclusive Dollars
•
Business Succession - Fund Buy-Sell
Agreement
•
IRA Exchange Opportunities
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 tax-exclusive dollars
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 buy-sell agreement to facilitate a transfer of the
business at his or her death, the plan should likely be funded with life insurance
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.
IRA Exchange Opportunity
IRA
$3MM Distribution Plan for IRA Client Created a 10-Year 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
IRS
At Death of Second Spouse, $7MM Passes as Tax-Exclusive Dollars to Heirs
$7MM Policy Purchased By an
Irrevocable Life Insurance Trust with
“Crummey Powers” Net After Tax
Proceeds
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.
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
Blueprint to Grow Your Business
1. Work Your Book
A. Retain
i. Client Experience ii. Communication Plans iii. Special Events Plan
B. Expand
i. Gain Additional Insight ii. Introduce the 13 Wealth
Management Issues
2. Attract New Clients
A. Create
Opportunities
i. The Profile Of The Client You Serve Best
ii. The 4-Point Branding Message
iii. Prospecting Plan
B. Capitalize On Opportunities
i. Interviews ii. GAP Analysis iii. Presentations
