presented by: sylvain templeman innovating products & creating value for the independent advisor...

Presented By:Sylvain Templeman

Innovating Products & Creating Value for the

Independent Advisor Practice

The AUI Marketplace

*Source: Ed Slott Newsletter – May 2015

$320B+ RolloversAnnually

Incorporated in 1984 & based in Bellevue, Washington, TPFG is an institutional money manager that has formed a strategic partnership with only a limited number of independent investment advisors to give you the best of both worlds; professional day-to-day asset management that is customized and coordinated for your specific goal and objectives by your local investment advisor representative.

Over time we have evolved over time to now offer our 3rd party investment management services on four distinctly different platforms.

1) Separately Managed Account (SMAs)

2) Managed Portfolios (MPs)

3) Variable Annuity Optimization (VAO)

4) Retirement Plan Management (RPM)

& 401(k) Pre-Rollover Solution

The Pacific Financial Group

PRS

Pre-Rollover Solution

401(k)

Help your client with their 401(k), 403(b) & 457 Accounts.

* While your client is employed* While your client is contributing to their 401k, 403b or

457* Without you doing an in-service transfer or rollover* Without being the Rep of Record on the Plan

.....it can now be an Asset Under Management without your client writing a check or having fees pulled from another account!

PRS

Pre-Rollover Solution

401(k)

With almost 30 years of experience and as a pioneer in the ‘Self-Directed Brokerage Account’ space, we have solved for the three major obstacles facing Financial Advisors trying to help their clients with 401(k)s, 403(b)s & 457 Accounts:

1) Complexity - streamlined AUM gathering process

2) Compensation - RIA & IAR are compensated by the AUM

3) Compliance - TPFG accepts full fiduciary role & responsibility

401(k) is a turnkey AUM program that WILL change the nature of your rollover business!

PRS

Pension Protection Act 2006

Highlights:

• More investment options

• Access to investment advice

• Risk managed portfolios

• Brokerage window options

• Fiduciary Accountability for plan vendors, sponsors and employers

Institutional Access

Fidelity

Self Directed Brokerage Account (SDBA)

‘Core’ Investment Options

Fixed Income, Real

Estate, Money

Market Funds

Lifestyle and Target Date

Funds

Large, Mid, Small Cap

Funds

Value, Growth,

Global Funds

‘Self-Directed’Brokerage Account

Client’s Retirement Account

401k – 401a – 403b - 457

Self Directed Brokerage Account

• Custom Investment Solution

• Incorporating: Your Age Years to retirement

Risk/reward assessment Minimizing overlap

The Value of Advice

3.32% ‘about’ 3%5.03%

Fixed Income

4.20%Equity

1 - Help in Defined Contribution Plans: 2006 Through 2012 – AON/Hewitt Study 20142 – How American Saves – A report on Vanguard defined contribution plan data - Vanguard 20123 – Quantitative Analysis of Investor Behavior – Dalbar’s 20th Annual Study 2013

The Value of a Pre-Rollover Solution

Does your AUM work for you or against you?

Traditional Rollover Case

Profile: Client A – “Ready to Roll” 65 years old

Retiring in a month

$300,000

6% Income to augment Social Security

Age:

Status:

Asset Value:

Objective:

6% annuallyR.O.R. Target:

Profile: Client A – “Ready to Roll” is a hypothetical illustration based on the numbers listed above

Traditional Rollover Case

1 2 3 4 5 6 7 8 9 10 $220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

$300,000

$310,000

Asset Value after 10 years

Rollover Asset Decline$251,272

Calculation facilitated @ http://www.flexibleretirementplanner.com/wp/planner-launch-page/

Profile: Client A – “Ready to Roll” is a hypothetical illustration based on the numbers listed on the previous slide

Profile: Client B – “The Catch Up Kid” 55 years old

Retiring in 10 years

$125,000 + $20,000/yr. in contributions

Growth & Accumulation with Risk Mgt

Age:

Status:

Asset Value:

Objective:

8% annuallyR.O.R. Target:

Case for a Pre-Rollover Solution

Profile: Client B – “The Catch Up Kid” is a hypothetical illustration based on the numbers listed above

1 2 3 4 5 6 7 8 9 10 $-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Case for a Pre-Rollover Solution

Asset Value after 10 years

Pre-Roll Asset Growth $510,691

Calculation facilitated @ http://www.flexibleretirementplanner.com/wp/planner-launch-page/Profile: Client B – “The Catch Up Kid” is a hypothetical illustration based on the numbers listed on the previous slide

Roadmap to

Set your sights on the right assets and finally let your AUM work for you, not against you!

Keys to success:1) Consistently adding 1 new client a month with an average balance of $125,0002) Encouraging clients to save more for retirement3) Average $20,000/yr. in combined contributions (employee & employer match)

4) Help clients & prospects where they need and want it most!

Ideal Client:Age 40-50Behind on saving for retirementWorking Professional

Compounding your AUM

Assets Under Management

Annual Contribution

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6$240,000 $720,000 $960,000 $1,200,000$480,000

$1.69M

$3.77M

$6.27M

$9.23M

$12.68M

Your Practice in 5+ years

** 8% ROR used for AUM growth illustration

$1,200,000

$14.97M

18.06%

Assets Under Management

Annual Contribution

Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

$1,200,000

$12.68M

Reve

nue

Your Practice in 10 years

** 8% ROR used for AUM growth illustration

$1,200,000

$14.97M

$1,200,000

$17.46M

$1,200,000

$20.16M

$1,200,000

$23.07M

$1,200,000

$26.23M

Assets Under Management

Annual Contribution

Year 1 Year 2 Year 3 Year 4 Year 5 Year 10$0.72M $0.96M $1.2M $1.2M

$1.69M

$6.27M

$9.23M

$12.68M

$26.23M

Reve

nue

** 8% ROR used for AUM growth illustration

1 Client a Month

Assets Under Management

Annual Contribution

4 Clients a Month

$0.96M

$6.76M

$3.77M

$15.07M

$1.92M $2.88M

$25.07M

$3.84M

$36.90M

$4.88M

$50.71M

$4.88M

$104.93M

Your Practice in 10 years

One Product - Two Solutions401(k) Pre-Rollover Solution

For Your Clients & Prospects For Your Business

The Help They Need

The Advice They Want

The Peace Of Mind They Deserve

Compounding AUM Bi-Weekly

Less Maintenance Service Model

Increasing Practice Value & Scalability

If you believe that a client deserves quality, independent investment advice on all their assets and that financial planning doesn’t begin the day they retire, then the best way to increase your current AUM & revenue is to look for different types of clients/assets already in your practice.

Existing Client Identification (Statements)

Presentation Paperwork

Your new activity begins with:

AUM Gathering – Getting Started

TPFG will help you with:

Your Time is Now

3 reasons to consider this in your business mix

1) Your CompetitionEvery Retirement Plan

Every Financial Services CompanyEvery advisor, Including Robo Advisors!

Your Competition

BettermentFidelity – P.A.S. @ WorkVALIC – G.P.S.Financial EnginesAssetBuilder by Ibbotson

Morningstar OptimizerSchwab Intelligent PortfoliosWealthfrontPrivate Label (ex: SigFig’s Algorithm)

Robo-advisors are a class of financial adviser that provides portfolio management online with minimal human intervention. While their recommendations may vary, they all employ algorithms such as Modern portfolio theory that originally served the traditional advisory community, which has relied on algorithmic templates to conduct portfolio management since at least 2005.

* study by Corporate Insight

AUM = $19 billion as of December 2014*

Your Time is Now

3 reasons to consider this in your business mix

1) Your Competition

2) Changing Demographics

Every Retirement PlanEvery Financial Services CompanyEvery advisor

80 is the new 60

Changing Demographics

**Source: http://www.transamericacenter.org/docs/default-source/resources/center-research/tcrs2014_sr_three_unique_generations.pdf

Baby Boomer: Pioneers of a New Retirement Paradigm

Your Time is Now

3 reasons to consider this in your business mix

1) Your Competition

2) Changing Demographics

3) Changing Regulations

Every Retirement PlanEvery Financial Services CompanyEvery advisor

80 is the new 60

FINRA Investor AlertTreasury Clears the Way for Annuities in 401(k)s

Regulatory Pressure

401(k) – Recent Changes

• Reduced Investment Options

• Computer Generated Investment Models

AKA - TDFs

• Automatic Enrollment (opt out vs opt in)

• Fee Disclosure – 408b2

• 404c Compliance

• Brokerage Windows

Future Lifecycle of an IRA Rollover

90%

Distribution

Your AUM Marketplace

$320B

Accumulation Robo - Conditioning

"If you want something you've never had, you have to do something you've never done.“

Thomas Jefferson

Your Time is Now

THANK YOU!