Follow-up Conference Call June 25, 2009 Capturing the Opportunity

Follow-up Conference Call Agenda Capturing the Opportunity I.Recap where we left off at the conference II.The importance of a different conversation with your clients prospects III.2 nd Opinion / Recovery Plan / Reboot Offer IV.What does a Consultative Process and client deliverables look like? V.How do we get at-bats?

Framing the Opportunity I.Investor Discontent 4 out of 5 investors want to switch their advisor Only 10 – 15% have done so. Why? Independent Advisors are not changing Performance is not a differentiator Clients (and their advisors) are focused on the wrong questions (questions that cant be answered)

II.REQUIRES A DIFFERENT CONVERSATION Capturing the Opportunity

The Great Advisors will focus on: 1.Planning process 2.Strategic asset allocation dictated by, and in service to, the plan 3.Behavior modification The Terrible Advisors will focus on: 1.Economic forecasting 2.Market prognostication 3.Handicapping future relative performance Nick Murray

Capturing the Opportunity The 3 Things You Must Do 1)Commit to change 2)Rediscovery meetings 3)Offer 2 nd Opinion Service (a.k.a. Recovery Strategy) John Bowen

Capturing the Opportunity III.2 nd Opinion Service 4 out of 5 want to switch advisors Hit the reset button Need a recovery strategy Four Rs of a Recovery Plan 1)Permission to Realize that there is something you can do 2)Reengage: stop contracting and expand (Reset, Regroup, Realign) 3)Design the Recovery Plan 4)Relax: stop holding your breath, begin sleeping again

Capturing the Opportunity III.2 nd Opinion Service 1.Start with questions to understand new values and goals: 1.First two sections of Discovery Interview Guide; 2.Or, questions relative to the current environment: What is the most important financial issue in your life at the moment? What is going on in your life right now that could have a major financial impact? What do you see as the biggest threat to your financial security? 2.Deliverable is Portfolio Analysis v.2

Capturing the Opportunity IV.Consultative Process

Capturing the Opportunity IV.Consultative Process: The Client Deliverables

Capturing the Opportunity IV.How do we get at-bats WSJ Article: 4 out of 5 investors 2 nd Opinion offer to clients 2 nd Opinion offer letter