Innovating Products & Creating Value for the Independent
Innovating Products & Creating Value for the Independent Advisor Practice Presented By: Sylvain Templeman The AUI Marketplace Rollovers + $320B Annually *Source: Ed Slott Newsletter May 2015 The Pacific Financial Group 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 3 rd 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 401(k PRS ) Pre-Rollover Solution 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! 401(k PRS ) Pre-Rollover Solution 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)PRS is a turnkey AUM program that WILL change the nature of your rollover business! 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) Clients Retirement Account 401k 401a 403b - 457 Core Investment Options Lifestyle and Target Date Funds
Fixed Income, Real Estate, Money Market Funds Value, Growth, Global Funds Large, Mid, Small Cap Funds Self-Directed Brokerage Account Custom Investment Solution
Self Directed Brokerage Account Incorporating: Your Age Years to retirement Risk/reward assessment Minimizing overlap The Value of Advice 4.20% 3.32% about 3% Equity 5.03% Fixed Income
1 - Help in Defined Contribution Plans: 2006 Through 2012 AON/Hewitt Study 2014 2 How American Saves A report on Vanguard defined contribution plan data - Vanguard 2012 3 Quantitative Analysis of Investor Behavior Dalbars 20 th 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 Age: 65 years old Status: Retiring in a month
Asset Value: $300,000 Objective: 6% Income to augment Social Security R.O.R. Target: 6% annually Profile: Client A Ready to Roll is a hypothetical illustration based on the numbers listed above Traditional Rollover Case Asset Value after 10 years $310,000 $300,000 Rollo
ver A sset D $290,000 $280,000 $270,000 eclin e $260,000 $251,272 $250,000 $240,000 $230,000 $220,000 1
2 3 4 5 6 7 8 9 10 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
Case for a Pre-Rollover Solution Profile: Client B The Catch Up Kid Age: 55 years old Status: Retiring in 10 years Asset Value: $125,000 + $20,000/yr. in contributions Objective: Growth & Accumulation with Risk Mgt R.O.R. Target:
8% annually Profile: Client B The Catch Up Kid is a hypothetical illustration based on the numbers listed above Case for a Pre-Rollover Solution Asset Value after 10 years $600,000 $500,000 ll o R Pre $400,000 th w
o r G t e s As $510,691 $300,000 $200,000 $100,000 $1 2
3 4 5 6 7 8 9 10 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
Compounding your AUM Set your sights on the right assets and finally let your AUM work for you, not against you! Ideal Client: Age 40-50 Behind on saving for retirement Working Professional Keys to success: 1) Consistently adding 1 new client a month with an average balance of $125,000 2) Encouraging clients to save more for retirement 3) Average $20,000/yr. in combined contributions (employee & employer match) 4) Help clients & prospects where they need and want it most! Your Practice in 5+ years Assets Under Management Annual Contribution
$6.27M $4.88M $4.88M $3.77M $1.69M $1.92M $0.96M Year 1 Year 2 ** 8% ROR used for AUM growth illustration $0.72M
$2.88M Year 3 $0.96M $3.84M Year 4 $1.2M Year 5 $1.2M Year 10 One Product - Two Solutions 401(k) Pre-Rollover Solution
For Your Clients & Prospects For Your Business The Help They Need Compounding AUM Bi-Weekly The Advice They Want Less Maintenance Service Model The Peace Of Mind They Deserve Increasing Practice
Value & Scalability AUM Gathering Getting Started If you believe that a client deserves quality, independent investment advice on all their assets and that financial planning doesnt 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. Your new activity begins with: Existing Client Identification (Statements) TPFG will help you with: Presentation Paperwork Your Time is Now 3 reasons to consider this in your business mix 1) Your Competition Every Retirement Plan Every Financial Services Company Every advisor, Including Robo Advisors!
Your Competition Betterment Robo-advisors are a class of financial adviser Fidelity P.A.S. @management Work that provides portfolio online with minimal human intervention. While VALIC G.P.S. their recommendations may vary, they all Financial Engines employ algorithms such as Modern portfolio theory that originally served the traditional
AssetBuilder by Ibbotson advisory community, which has relied on algorithmic templates to conduct portfolio Morningstar Optimizer management since at least 2005. Schwab Intelligent Portfolios AUM = $19 billion as of December 2014* Wealthfront Private Label (ex: SigFigs Algorithm) * study by Corporate Insight Your Time is Now 3 reasons to consider this in your business mix 1) Your Competition Every Retirement Plan Every Financial Services Company
Every advisor 2) Changing Demographics 80 is the new 60 Changing Demographics Baby Boomer: Pioneers of a New Retirement Paradigm **Source: http://www.transamericacenter.org/docs/default-source/resources/center-research/tcrs2014_sr_three_unique_generations.pdf Your Time is Now 3 reasons to consider this in your business mix 1) Your Competition Every Retirement Plan Every Financial Services Company Every advisor 2) Changing Demographics 80 is the new 60
3) Changing Regulations FINRA Investor Alert Treasury 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% 90% Your AUM Marketplace Accumulation
Robo - Conditioning $320B Distribution Your Time is Now "If you want something you've never had, you have to do something you've never done. Thomas Jefferson THANK YOU!
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