Transcript Live well: build wealth and bury debt

Working together to achieve business goals
<Adviser’s Name>
<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd
Working together to achieve business goals
<Adviser’s Name>
<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd
Working together to achieve business goals
<Adviser’s Name>
<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd
Working together to achieve business goals
<Adviser’s Name>
My Name Financial
<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd
Working together to achieve business goals
<Adviser’s Name>
JV logo
<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd
Disclaimer
Important Notice
RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and
is licensed to provide financial product advice and deal in financial products such as: deposit and payment
products, derivatives, life products, managed investment schemes including investor directed portfolio services,
securities, superannuation, Retirement Savings Accounts.
The information presented in this seminar is of a general nature only and neither represents nor is intended to be
specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically
on the basis of the information contained herein but should obtain appropriate professional advice based on their
own circumstances.
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Overview
• Who are we?
• Working with clients and their professional advisers
• Challenges and opportunities for legal firms
• What do clients want?
• How we help clients
• [RI Office] services and strategy
• Working with [name of legal firm]
• The benefits to your practice
• Advantages of working with us
• Joint marketing opportunities
• Why alliances don’t work
• Next steps
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RI Advice Group credentials
Experienced
• We are licensed by RI Advice Group (formerly RetireInvest) - One of Australia’s most highly regarded
financial advice groups with over 30 years’ experience.
• Our group has over 110 offices nationwide with more than 80,000 clients and $10 billion under advice.
• Professional personal financial planning advice.
• Backed by quality research and technical teams.
• We are highly trained and we have a policy that every adviser must commit to a program of continuing
professional development.
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<RI Office> background and corporate structure
Proprietors/Advisers
Proprietor 1 name
Proprietor 2 name
Adviser
Client service
Adviser Names
CSO names
RI Advice Group
Technical
Best
Practice
Marketing Research
Prof
Standards
Adviser
Systems
Risk
Corporate
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How we like to work with clients and their professional partners
#1 - We place the interest of our clients first.
We specialise in financial advice and collaborate with our clients and their professional partners.
Our goal is to provide clients with good outcomes.
Peace of mind
• Does your client have
enough to meet their
retirement and legacy
goals?
• What happens if the
client’s SMSF is noncompliant?
• How will your clients meet
their living needs in the
event of injury, illness or
death?
• What is the risk to your
business in getting this
wrong?
Thought partner
Growth partner
• Are we trying to be all
things to all people?
• Who can you talk to about
technical queries relating to
legislation, technical strategy
and product solutions?
• Who can you talk to about
the challenges your
business faces and access
practice management tools
and processes?
• Can we focus on our core
strengths and collaborate in
a cross referral approach to
provide clients with
improved services, grow our
business and protect against
competitors?
• Can you leverage from an
aligned specialist?
• Can you diversify your
income source?
Challenges for legal firms
• How to provide solutions to your clients’ unmet financial advice and wealth management
needs…before the competition?
• How to provide these financial services effectively?
• How to comply with FSR?
• How to promote these new financial services to grow your client base?
• How to obtain client referrals?
How do you do this without losing
focus on your core business?
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Opportunities for legal firms
More and more Australians are looking for
financial advice.
Solicitors are often the first point of enquiry.
Don’t turn away business.
It’s time to capitalise on this movement!
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What do clients want?
Peace of mind
Strategic advice from
a proven financial specialist
Responsive and consistent
professional service
A range of financial services to
meet their evolving needs
Financial education and
information
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How we help clients
Wealth
Lifestyle
-Private education -New car -Travel -Eating out -Holidays -Investment property
Cash Income Growth
Where you want to be
Lock in your lifestyle
- Risk protection
- Estate Planning
$0
Concerned about
managing debt?
Saving for your
children’s
education?
Want to retire
sooner?
Living in
Retirement?
Leaving a
legacy?
Your current situation
Survival
-Loss of income -Trauma -Disability -Tragedy -Caring for grandchildren - Death
Debt
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[RI Office] services
• Retirement planning
• Investment selection
• Superannuation advice
• Retrenchment optimisation
• Debt management and lending services
• Aged care services
• Access to Government benefits
• Estate planning
• Personal and business risk insurance
Helping clients create, grow,
protect and enjoy their
wealth wisely
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Working with [Insert name of legal firm]
Legal area
Scenario
Compensation

How to invest compensation payments to meet
income requirements and any capital expenditure.

The impact on social security entitlements.
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Investing settlements from a divorce.
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Splitting of superannuation in the settlement.

Developing and reviewing financial plans to
incorporate divorce and property settlement.
Divorce
settlements
Superannuation
Seek financial advice
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Splitting of super contributions with a spouse.
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Building superannuation savings.
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Generating retirement income from superannuation.
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Ensuring withdrawals from superannuation or
income streams are tax effective.
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Choosing a superannuation investment vehicle.
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Self Managed Super Fund considerations such as
investment options, and investment strategy at
different life stages.
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Working with [Insert name of legal firm]
Legal area
Scenario
Aged care

Funding living arrangements in aged care facilities.

Advice on social security implications of moving into an aged care
facility.
Ensuring assets are structured in the most cost effective way for
beneficiaries.
Estate planning
Investments
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Redundancy
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Advice on assets that fall outside the control of a Will such as
superannuation and life insurance
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Advice on death benefit options within superannuation.
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The effect of an inheritance on social security entitlements.
Advice on different types of investments such as property, shares, fixed
interest and cash.
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Advice on the ownership structures for investments, for example
individual ownership, tenants in common etc.
The appropriate amount of life cover whether death only, total and
permanent disability, trauma and income protection.
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How to fund the premiums for life insurance, for example within
superannuation.
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Advice on buy/sell arrangements for business owners.
Advice on redundancy payment options available and strategies to utilise
this capital.
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Life insurance
Seek financial
advice
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Case Study: Growing professional family
• Simon (32) is married to Sarah (32). They have a 1 year old
daughter Chloe and are planning to extend their family.
• Simon is a mortgage broker and is due to become a junior
partner at the company where he works.
• You have just managed the property settlement for their new
home.
Financial Planner
Solicitor
Accountant
• Personal Risk
• Structures
• Business Valuation
• Estate Planning
• Asset Protection
• Tax Planning
• Business Succession
• Estate Planning
• Personal Financials and returns
Planning
• Business Succession
• Entity financials and returns
• Asset Protection
• Establishment of Entities
• SMSF Admin
• Wealth management
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Case Study: Divorced business owner
• Peter (56) an existing client of Grice and Grice is a sole director
of a SME and is recently divorced.
• Now living in a de-facto relationship his new partner (Sue) is
also a divorcee. Assets split in divorce – they need to rebuild
wealth and plan for retirement.
• Both bring assets (including property) and adult children into
the relationship.
Financial Planner
Solicitor
Accountant
Finance Broker
• Personal Risk
• Structures / ownership
• Business Valuation
• Debt Solutions
• Estate Planning
• Asset Protection
• Tax Planning
• Mortgage / Finance
• Business Succession
• Estate Planning
• Personal Financials
Advice
Planning
• Business Succession
and returns
• Mortgage Structures
• Asset Protection
• Establishment of
• Entity financials and
• Debt consolidation
• Wealth management
Entities
returns
• Wealth Creation using
• SMSF Admin
debt
• Tax
• Retirement
• Offset accounts
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‘But it won’t happen to me!’ – Are your clients aware of the risks?
You have a more than 60%
change of being disabled for
more than 1 month during your
working life
Interim report of the feasibility committee. Institute of Actuaries of
Australia 2000
By the time a male reaches
age 85 there is a 1 in 2 chance
they will have been diagnosed
with cancer at some point
(1 in 3 for females)
Cancer in Australia, Australian Institute of Health and Welfare,
December 2010
Between 1982 and 2007 there was a
200% increase in the number of new
cancer cases diagnosed. Over the
same period the population grew by
30%.
Cancer in Australia, Australian Institute of Health and Welfare, December 2010
The prevalence of diabetes has
trebled over the last 20 years. There
are estimated to be over 800,000
diabetics in Australia.
Diabetics are 5 x more likely to have
a stroke and 10 x more likely to have
a heart attack.
Australia’s health 2010. Australian Institute of Health and Welfare
We are Fee for Service
Advice
Product/Platforms
• Fixed dollar fee for service based • Broad approved product list.
on complexity of clients personal
• Given FFS nature of business the
circumstances.
product/platform solution is based on
• <Optional> Advice Fee range will
best interest duty obligation (i.e.
generally vary between $X-$X
irrelevant between industry fund,
SMSF, retail platform).
• The fee for this may be deducted
from any product recommendations • Where clients existing
to assist with cash-flow or
product/platform is inappropriate, we
alternatively can be invoiced directly will generally move towards
to the client.
wholesale platforms as a low cost
client solution.
Ongoing Service
• Fixed fee for service based on a X
level client service model.
•<Optional> Advice Fee range for
ongoing service will be:
- Platinum > $X
- Tailored > $X
- Self Directed > $X
• Service level & ongoing feel will
vary based on clients personal
circumstances, complexity and
needs.
• The client is provided with a
transparent service level agreement.
•The fee for this may be deducted
from any product recommendations
to assist with cash-flow or
alternatively can be invoiced directly
to the client
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The benefits to your practice
• Increase the appeal of your practice
• Attract new clients
• Satisfy client needs within your practice
• Retain existing clients
• Create alternative revenue stream
• Increase the profitability of your practice
• Increase the value of your practice
Offering financial advice
and wealth management services
will generate many benefits
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Advantages of working with us
• Widely recognised and well-respected company
• Depth and breadth of services and expertise
• Service driven, not product driven
• Well developed Alliance program
• Extensive marketing resources to facilitate take-up
Our aim is to let you focus on your core business while we ensure
that your clients’ financial planning needs are fully met and their
experience meets your firm’s high standards
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Joint marketing opportunities
New client seminars
Client briefings
Newsletters and flyers
Client functions
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Why Alliances Don’t Work
• Perceived imbalance between the benefits derived from the parties within the
relationship
• No clarity about how the arrangement will work in operation
• Perceived risks a centre of influence partner may have about the relationship
• Client ownership
• No incentives in place
• Lack of understanding
• The referees are not educated as to how to recognise the client’s needs
• Lack of a structured marketing plan
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Next Steps
Where synergies exist, it is important to get clarity around how the relationship can work in
practice. As such we should consider:
• Alliance/Relationship Objectives
• Structure of the alliance/relationship
• Referral Process
• Launch program (communication strategy, marketing plan).
• Board of Review - Performance Management
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Thank you
Contact <office> on <phone> for further information