1 Fee Based Business In a Financial Planning Practice. Presented by Melissa Shaw, CFP NACUSO 2001 Annual Conference May 8-11, 2001 Las Vegas, NV

2 The Financial Advisor  Building on the Relationship.  Growing with your clients for years.  Helping people make better decisions about money!

3 A Credit Union is like “family.”  “You can trust them.”  “They’ll take good care of you.”  “You can get your questions answered.”  Your customers want to do business with you!

4 Playing The “Money Game:” The Rules to the Game.  Get Married.  Own a home.  Have an Emergency Fund.  Protect the Assets you have and Accumulate more.  Raise a family.  Save for Education and Retirement.  Be Financially Independent. Retire.  Be Happy, Healthy, and Pass Wealth On.

5 The “Money Game” is more than just than making money.

6 Where does it all begin?  With Cash Flow!  Where does the money come from and where does it go to?  Do you make more than you spend?  The goal is to turn cash flow into Net Worth over the years.  Financial Independence is when their Net Worth is the Goose that lays the Golden Eggs!

7 Taking Charge of Your Financial Life  Spend less than you make.  Save a little every month that you can.  Protect the assets you have while you work to accumulate more.  The “Money Game” is always changing as is your own life. Embrace change.

8 How do you keep score?  You look at the Balance Sheet also known as the Statement of Financial Position.  It’s your “report card.”  It’s the “State of the Union” report in a marriage.  Protect the assets you have while you work to accumulate more.

9 Communication is key...  Not spending everything you make.  Understanding the 4 kinds of savings. –1. Emergency Fund 3. Save for a Goal –2. Save to Spend 4. Retirement  Being able to talk about goals, dreams and desires.

10 Your Family Mission Statement

11 Business within the Credit Union  Commission earned on products sold.  Trails  Rewrites –The Challenges of “Rolling” Business.  Fee Income

12 The Registered Investment Advisor  Assets Under Management  Financial Counseling Services  Portfolio Analysis and Review.  Fee Planning Services.

13 Working within the Credit Union Branch.  Access to clients on a daily basis.  Solving problems.  Marketing.  The 80/20 rule. –It’s easier to cream off the top.  How do you get to the bottom 80%?

14 Through Marketing Efforts.  Account Stuffers  Web Site  e-commerce  Seminars  Referrals from happy clients!  Professional Relationships with advisors.

15 Financial Planning is a Process, Not a Product.  The 6 Areas of Financial Planning –Cash Flow Analysis –Risk Management and Insurance –Investing for Wealth Accumulation –Tax Planning –Retirement Planning –Estate Planning

16 Building your financial house...

17 The Financial Counselor Notebook  A Personal Financial Organizer  Lends “Perspective” to their whole financial situation.  Encourages communication.  Provides a means for education & worksheets.  Helps to establish where they are now, so we have a “baseline” to measure from!

18 A Marketing Plan  Customize the Financial Counselor Notebook to your Credit Union.  Develop a marketing plan to encourage customers to “Take Charge of their Finances.”  Customers that purchase notebooks can be serviced at a local branch or referred back to a planner through the Internet.

19 Fee Based Business  Customers don’t care how much you know until they know how much you care.  The Financial Counselor Notebook system is not a “financial plan” but it is the beginning of one!  Customers feel better about their finances when they go through this process. Your job is made easier when you use it too!

20 Compliance Issues  The Financial Counselor Notebook has been reviewed and approved by the NASD.  You need to have an RIA in order to do fee planning work. I charge a flat fee for a service I perform with clients.  We apply for the job of asset management and product implementation.

21 Making Money...  The Financial Counselor Notebook is an easy tool to incorporate to systems you’re already using.  I average $2500 in fees and commissions from each client I work with through the Financial Counselor Notebook process.  E-commerce: can be created custom for your web site.

22 Thank you for your time! I hope it was helpful!  Melissa Shaw, CFP  Jones Associates Financial & Insurance Services, Inc.    –24411 Ridge Route Dr., #115 –Laguna Hills,CA 92653

23 Marketing Opportunities...  100 Custom Notebooks  FCN Software Program  Web Site customization  Account Stuffer  Marketing Easel  Retail Brochure

24 Working the plan...  10 Clients generating $2500 in fees and commissions is $25,000.  100 Clients generating $2500 is $250,000.  Do you have an RIA?  Can you charge fees for financial counseling?  Are you prepared to help manage assets?